Paints makes and sells paint to home improvement stores.

ColtonColton$\text{'}$s

only plant can produce up to

$1515$

million cans of paint per year. Current annual production is

$1212$

million cans. Fixed$$ manufacturing, selling, and administrative costs total

$ $10\mathrm{.}8$$$10\mathrm{.}8$

million per year. The variable cost of making and selling each can of paint is

$ $6\mathrm{.}20$$$6\mathrm{.}20.$

Stockholders expect a

$1515\%$

annual return on the$$ company's

$ $39$$$39$

million of assets. Requirement $3.$ Continuing with Requirement$2,$ let's say that

ColtonColton

has found ways to reduce its total fixed costs by

$ $310$ comma $000$$$310,000.$

What is the target variable cost per can of$$ paint?