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need help on req 4 Score: 2.1 of 3 pts 1 of 6 (6 complete) HW Score: 93.57%, 13.1 of 14 pts E8-20A (similar to)
need help on req 4
Score: 2.1 of 3 pts 1 of 6 (6 complete) HW Score: 93.57%, 13.1 of 14 pts E8-20A (similar to) Question Help 0 Wyndharn Paints makes and sells paint to home improvement stores. Wyndharn's only plant can produce up to 10 million cans of paint per year. Current annual production is 6 million cans. Fixed manufacturing, selling, and administrative costs total $9.6 million per year. The variable cost of making and selling each can of paint is $6.40. Stockholders expect a 25% annual return on the company's $42 million of assets. Read the requirements. Select the formula labels and enter the amounts to calculate Wyndham's target variable cost per can of paint. (Enter currency amounts in dollars, not in millions. Enter unit values as whole numbers, not in millions, Round cost per unit amounts to the nearest cent, SX.XX.) Target total cost $ 36,900,000 Less: Fixed costs 9,320,000 Target total variable costs 27,580,000 Divided by: Number of units 6,000,000 Target variable cost per unit 4.60 $ Requirement 4. Suppose Wyndham plans to spend an additional $1.6 million on advertising to differentiate its product in order to increase sales volume to 7.5 million cans and become more of a price-setter. Assume that Wyndham did reduce its total fixed costs by $280,000 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? Select the formula labels and enter the amounts to calculate Wyndham's post-plus price for a can of paint under these conditions. (Enter currency amounts in dollars, not in millions. Round cost per unit amounts to the nearest cent, SX.XX.) Total variable costs 9320000 Total fixed costs Current total costs Plus: Desired profit Target revenue 10,500,000 Divided by: Number of units 7,500,000 Cost-plus price per unit Choose from any list or enter any number in the input fields and then click Check Answer. ? All parts showing Clear All Chock Antwer CheckStep by Step Solution
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