Linberg Paints makes and sells paint to home improvement stores. Linberg's only plant can produce up to 9 million cans of paint per year. Current annual production is 6 million cans. Fixed manufacturing, selling, and administrative costs total $8.4 million per year. The variable cost of making and selling each can of paint is $6.40. Stockholders expect a 15% annual return on the company's $34 million of assets. Read the requirements. Requirement 1. What is Linberg's current total cost of making and selling 6 million cans of paint? What is the current cost per can of paint? (Enter currency amounts in dollars, not in millions. Enter unit values as whole numbers, not in millions. Round all currency amounts to the nearest whole dollar and round the cost per unit to the nearest cent, SX.XX.) Linberg's current total cost of making and selling 6 million cans of paint is $ per can of paint is $ . The total current cost Requirements 1. What is Linberg's current total cost of making and selling 6 million cans of paint? What is the current cost per can of paint? 2. Assume that Linberg is a price-taker and the current wholesale market price is $8.40 per can of paint. What is the target total of cost in producing and selling 6 million cans of paint? Given Linberg's current total costs, will the company reach stockholders' profit goals? 3. Continuing with Requirement 2, let's say that Linberg has found ways to reduce its total fixed costs by $270,000. What is the target variable cost per can of paint? 4. Suppose Linberg plans to spend an additional $1.6 million on advertising to differentiate its product in order to increase sales volume to 7 million cans and become more of a price-setter. Assume that Linberg did reduce its total fixed costs by $270,000 as stated in Requirement 3 but could not find ways to save on its variable costs. What is the cost-plus price for a can of paint under these conditions? Print Done - X