MC Indies as servs bills, only plant can produce as many as 2.500.000 cans of tennis balls per year. Current production is 2,000,000 cans Annual manufacturing, seling, and administrative Exed costs total $700.000. The vanable cost of making and selling each can of lannis talis is $1.00. Stockholders expect a 12% annual retum on the company's $3,000,000 of assets Rest thereme C Raquirement 1. What is MC Alexander's cument full product cost of making and seling 2.000 000 cans of tennis balls? What is the current full unit profuct cost of each can of Sennis balls? (Round the per unit cost to the nearest cant.) Plus To d product cos Divided by the Full put cont per a Requirement 2 Anime MC Alexander a price-taker, and the curent market price is $1.45 per can of tennis balls (he price at which manufacturers call to retailors) What is the farger full product cost of producing and saling 2.000.000 cars of tennis tails? Given MC Alexander's curent costs, wil the compary reach the stockholders profit goals? Pest, usia the target full product cost af producing and seling 2.000,000 cars of tennis bal Line Tr GMC Aander's cument costs, we congany reach the dockholders prof ges? MC A's metal fu produd sis large full product cost. MC Alexander be able to meet stockholders profit expectations gument 31 MC Ander can change feds, what is the target variable cost per san of tennis bais? Er the per unit cost to the nearest cont.) Lee Target to be Ovisted be Tage ab co per can Regent & Suppose C Aissande 100.000 on adverting to offered its product so that it could be a price seter Assuming the original volume and costs, plus the $100,000 of new advertising costs, wap MC Asander was charge aan of as bals found the per unk cost to the neatent) Pla Calculator y of the Requirements 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? 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? 3. If MC Alexander cannot change its fixed costs, what is the target variable cost per can of tennis balls? 4. Suppose MC Alexander could spend an extra $100,000 on advertising to differentiate its product so that it could be a price-setter. Assuming the original volume and costs, plus the $100,000 of new advertising costs, what cost-plus price will MC Alexander want to charge for a can of tennis balls? 5. Nelson, Inc. has just asked MC Alexander to supply the company with 400,000 cans of tennis balls at a special order price of $1.20 per can. Nelson wants MC Alexander to package the tennis balls under the Nelson label (MC Alexander will imprint the Nelson logo on each tennis ball and can). MC Alexander will have to spend $10,000 to change the packaging machinery. Assuming the original volume and costs, should MC Alexander accept this special order? (Assume MC Alexander will incur variable selling costs as well as variable manufacturing costs related to this order.) Print Done