MC Alexander Industries makes tennis balls. Its only plant can produce as many as 2,500,000 cans of tennis ballsper year Current production is 2,000,000 cans. Annual manufacturing, selling, and administrati fixed costs total $700,000. The variable cost of making and selling each can of tennis balls is $1.00. Stockholders expect a 12% annual return on the company's $3,000,000 of assets Read the requirements. Requirement 1. What is MC Alexander's current full product cost of making and selling 2,000,000 cans of tennis balls? What is the current full unit product cost of each can of tennis balls? (Round the per unit cost to the nearest cent.) Requirement 2. Assume MC Alexander is a price-taker, and the current market price is $1.45 per can of tennis balls (the price at which manufacturers sell to retailers). What is the target full product cost of producing and selling 2,000,000 cans of tennis balls? Given MC Alexander's current costs, will the company reach the stockholders' profit goals? First, calculate the target full product cost of producing and selling 2,000,000 cans of tennis balls. Given MC Alexander's current costs, will the company reach the stockholders' profit goals? MC Alexander's current total full product cost is than the target full product cost. MC Alexander be able to meet stockholders' profit expectations Requirement 3. If MC Alexander cannot change its fixed costs, what is the target variable cost per can of tennis balls? (Enter the per unit cost to the nearest cent.) Less: Target total variable costs Divided by the Target variable cost per can new advertising costs, what cost-plus price will MC Alexander want to charge for a can of tennis balls? (Round the per unit cost to the nearest cent.) Plus: Plus: Target revenue Divided by the Cost-plus price per can First, calculate the income or loss on the special order. (Use parentheses or a minus sign for a loss.) Less Contribution margin from special order Less: Operating income or loss provided by special order MC Alexander accept the special order because it will operating income