ork Question 2, E8-20A (book/static) HW Score: 12.15%, 1.22 of 10 points Part 1 of 5 Points: 0 of 1 S Jamison Paints makes and sells paint to home improvement stores. Jamison's only plant can produce up to 12 million cans of paint per year. Current annual production is 10 million cans. Fixed manufacturing, selling, and administrative costs total $15 million per year. The variable cost of making and selling each can of paint is $6.00. Stockholders expect a 15% annual return on the company's $40 million of assets. Read the requirements. Requirement 1. What is Jamison's current total cost of making and selling 10 million cans of paint? What is the current cost per can of paint? Select the formula labels and enter the amounts to calculate Jamison's current total cost and current cost per can of paint. (Enter currency amounts in dollars, not in millions. Enter unit values as whole numbers, not in millions. Round all currency amounts to the nearest whole dollar and round the cost per unit to the nearest cent, $X.XX.) Plus: Divided by: Total cost per unitork Question 2, E8-20A (book/static) HW Score: 12.15%, 1.22 of 10 points Part 1 of 5 O Points: 0 of 1 Jamison Paints makes and sells paint to home improvement stores. Jamison's only plant can produce up to 12 million cans of paint per year. Current annual production is 10 million cans. Fixed manufacturing, selling, and administrative costs total $15 million per year. The variable cost of making and selling each can of paint is $6.00. Stockholders expect a 15% annual return on the company's $40 million of Read the requirements X Requirements 1. What is Jamison's current total cost of making and selling 10 million cans of Requirement 1. What i paint? What is the current cost per can of paint? can of paint? Select the formula labe 2. Assume that Jamison is a price-taker and the current wholesale market price currency amounts in dollars, not in millions. Enter unit values as whole numbers, not in is $8.00 per can of paint. What is the target total of cost in producing and st cent, $X.XX.) selling 10 million cans of paint? Given Jamison's current total costs, will the company reach stockholders' profit goals? 3 . Continuing with Requirement 2, let's say that Jamison has found ways to Plus reduce its total fixed costs by $300,000. What is the target variable cost per can of paint? 4. Suppose Jamison plans to spend an additional $2 million on advertising to Divided by: differentiate its product in order to increase sales volume to 10.5 million cans and become more of a price-setter. Assume that Jamison did reduce its total Total cost per unit fixed costs by $300,000 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? Print Done Get more help - Clear all Check