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o Garden Away operates a commercial plant nursery where it propagates plants for garden centers throughout the region. Garden Away has $3.5 million in assets.

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o Garden Away operates a commercial plant nursery where it propagates plants for garden centers throughout the region. Garden Away has $3.5 million in assets. Its yearly foxed costs are $470,000, and the variable costs for the potting soil, container, label, seedling, and labor for each gallon-sized plant total $1.60. Garden Away's volume is currently 500,000 units. Competitors offer the same quality plants to garden centers for $3.30 each. Gardon 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. Garden Away owners want to earn a 13% return on the company's assets. What is Garden Away's target full cost? 3 Calculate the target full cost for Garden Away. Select the formula labels and enter the amounts. 55 Revenue at current market price Lots: Curront variable costs $2 Target full cost Requirement 2. Given Garden Away's current costs, will its owners be able to achieve their target profit? Show your analysis. Calculate Garden Away's current total full cout. Select the formula labels and enter the amounts. cand Total full cost Garden Away's current total full costs of $ meet the owner's profit expectations its target full cost Garden Away Choose from any list of enter any number in the input fields and then continue to the next question o Garden Away operates a commercial plant nursery where it propagates plants for garden centers throughout the region. Garden Away has $3.5 million in assets. Its yearly foxed costs are $470,000, and the variable costs for the potting soil, container, label, seedling, and labor for each gallon-sized plant total $1.60. Garden Away's s volume is currently 500,000 units. Competitors offer the same quality plants to garden centers for $3.30 each Garden centers then mark them up to sell to the public for $9 to $12, depending on the type of plant. S4 Read the requirements S1 Requirement 3. Assume that Garden Away has identified ways to cut its variable costs to $1.45 per unit. What is its new target faced cost? Will this decrease in variable costs allow the company to achieve its target profit? Show your analysis. $3 Target full cost 65 Loss: Reduced level of variable costs New target foxed costs $2 The new target fixed cost is By reducing variable costs to $145, Garden Away be able to achieve its target profit without having to take any other cost cutting measures Requirement 4. Garden Away started an aggressive advertising campaign strategy to differentiate its plants from those grown by other nurseries Garden Away Stand doesn't expect volume to be affected, but it hopes to gain more control over pricing Garden Away has to spend $40,000 this year to advertise and its variable costs shes continue to be $1.45 per unit, what will its cost plus price be? Do you think Garden Away will be able to set its plants to garden centers at the cont plus price? Why or why not? Determine its cost-plus price (Round the cont plus price to the nearest cent) Plus Choose from any list or enter any number in the input folds and then continue to the next question . Garden Away operates a commercial plant nursery where it propagatos plants for garden centers throughout the region. Garden Away has $3.5 million in assets. Ils yearly fixed costs are $470,000, and the variable costs for the potting soi, container, label, seedling, and labor for each gallon-sized plant total $1.60. Garden Away's volume is currently 500,000 units. Competitors offer the same quality plants to garden centers for $3.30 each. Garden centers thon mark them up to sell to the public for $9 to $12, depending on the type of plant. 54 Read the requirements. $1 Requirement 4. Garden Away started an aggressive advertising campaign strategy to differentiate its plants from those grown by other nurseries, Garden Away doesn't expect volume to be affected, but it hopes to gain more control over pricing. If Garden Away has to spend $40,000 this year to advertise and its variable costs $3 continue to be $1.45 per unit, what will its cost-plus price be? Do you think Garden Away 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 negrost cont.) 65 $2 Plus: Stand hes Plus: Targol revenue Divided by Cost-plus price per unit Consumers will be more willing to pay the cout-plus price' the marketing campaign is offective Otherwise Garden Away may be considered a premium nursery Choose from any list or enter any number in the input fields and then continue to the next

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