Nature Place operates a commercial plant nursery where it propagates plants for garden centers throughout the region. Nature Place has $6.85 million in assets. Its yearly fixed costs are $584,000, and the variable costs for the potting soil, container, label, seedling, and labor for each gallon-sized plant total 51.65. Nature Place's volume is currently 470,000 units. Competitors offer the same quality plants to garden centers for $4.20 each. Garden centers then mark them up to sell to the public for $9 to $12, depending on the type of plant. Read the requirements. Requirement 1. Nature Place owners want to earn a 10% return on the company's assets. What is Nature Place's target full cost? Calculate the target full cost for Nature Place. Select the formula labels and enter the amounts. Less: Target full cost Requirement 2. Given Nature Place's current costs, will its owners be able to achieve their target profit? Show your analysis. Calculate Nature Place's current total full cost. Select the formula labels and enter the amounts. Total full cost Nature Place's current total full costs of $ is its target full cost. Nature Place meet the owner's profit expectations. Requirement 3. Assume that Nature Place has identified ways to cut its variable costs to $1.50 per unit. What is its new target fixed cost? Will this decrease in variable costs allow the company to achieve its target profit? Show your analysis. Target full cost Less:Reduced level of variable costs New target fixed costs The new target fixed cost is By reducing variable costs to $1.50, Nature Place be able to achieve its target profit without having to take any other cost cutting measures. Requirement 4. Nature Place started an aggressive advertising campaign strategy to differentiate its plants from those grown by other nurseries. Nature Place doesn't expect volume to be affected, but it hopes to gain more control over pricing. If Nature Place has to spend $94,000 this year to advertise and its variable costs continue to be $1.50 per unit, what will its cost-plus price be? Do you think Nature Place will be able to sell its plants to garden centers at the cost-plus price? Why or why not? Determine its cost-plus price. (Round the cost-plus price to the nearest cent.)