Nature's House operates a commercial plane rury where i propagate plants for garden centers troughout the region. Nature's House 5 million in the yearly fed couts we 600,000, and the variable costs for the potting container wel weding, and labor for each one ano 51.25 Nature's How volume is currently 600,000 units Competitors for the same quality plants to garden centers for $3.50 each Garden Center the mark them up to to the public for 1 to $12, depending on the type of part Read the more Requirements. He's House owners want to woma 125 retum on the company's What is Nature's House's tweet? Calculate the real cost for Nature's House Select the formula labels and enter the amount Rum mula Requirements - X 1. Nature's House owners want to earn a 12% return on the company's assets. What is Nature's House's target full cost? 2. Given Nature's House's current costs, will its owners be able to achieve their target profit? Show your analysis. 3. Assume that Nature's House has identified ways to cut its variable costs to $1.10 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. 4. Nature's House started an aggressive advertising campaign strategy to differentiate its plants from those grown by other nurseries. Nature's House doesn't expect volume to be affected, but it hopes to gain more control over pricing. If Nature's House has to spend $100,000 this year to advertise and its variable costs continue to be $1.10 per unit, what will its cost-plus price be? Do you think Nature's House will be able to sell its plants to garden centers at the cost-plus price? Why or why not? Nature's House operates a commercial plane rury where i propagate plants for garden centers troughout the region. Nature's House 5 million in the yearly fed couts we 600,000, and the variable costs for the potting container wel weding, and labor for each one ano 51.25 Nature's How volume is currently 600,000 units Competitors for the same quality plants to garden centers for $3.50 each Garden Center the mark them up to to the public for 1 to $12, depending on the type of part Read the more Requirements. He's House owners want to woma 125 retum on the company's What is Nature's House's tweet? Calculate the real cost for Nature's House Select the formula labels and enter the amount Rum mula Requirements - X 1. Nature's House owners want to earn a 12% return on the company's assets. What is Nature's House's target full cost? 2. Given Nature's House's current costs, will its owners be able to achieve their target profit? Show your analysis. 3. Assume that Nature's House has identified ways to cut its variable costs to $1.10 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. 4. Nature's House started an aggressive advertising campaign strategy to differentiate its plants from those grown by other nurseries. Nature's House doesn't expect volume to be affected, but it hopes to gain more control over pricing. If Nature's House has to spend $100,000 this year to advertise and its variable costs continue to be $1.10 per unit, what will its cost-plus price be? Do you think Nature's House will be able to sell its plants to garden centers at the cost-plus price? Why or why not
