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Patterson Paints makes and sells paint to home improvement stores Patterson's only plant can produce up to 15 milion cans of paint per year Current

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Patterson Paints makes and sells paint to home improvement stores Patterson's only plant can produce up to 15 milion cans of paint per year Current annual production is 10mmon cans. Fxed manufacturing, selling and administrative costs total $20 million per year. The variable cost of making and selling each can of paint is $5.50. Stockholders expect a 20% annual return on the company's 542 milion of assets. Requirement 1. What is Patterson's current total cost of making and deling 10 million cans of paint? What is the current cost per can of paint? Select the formula labels and enter the amounts to calculato Patterson's current total cost and current cost per con of paint (Enter currency amounts in dollars, not in millions Enter unit values as whole numbers, not in misom. Round all currency amounts to the nearest whole dollar and round the cost per unit to the nearest cant sx.xx.) Plus Divided by Total cost per unit Requirement 2. Assume that Patterson is a prico-takot and the current wholesale market price is $8.00 per canot paintWhat is the target total of cost in producing and selling 10 milion dans of paint? Given Patterson's current total costs, wil the company reach stockholders' profit goals? Begin by calculating Patterson's targot total coat. Seloct the formula labels and enter the amountu (Enter currency amounts in dotare not in million. Found at currency amounts to the nearest whole dollar Los Torget total cost Given Patterson's current total costs wil the company reach stockholders profil goals? (Enter currency amounts in doars, not in mors The company coach stockholderi orolt goals. There will be on) Patterson Paints makes and so point to home improvement stores. Patterson's only plant can produce up to 13 million cans of paint per year. Current annual production is 10 min can Foed manufacturing, selling and administrative costs total $20 million por year. The variable cost of making and selling each can of paint is $5.50. Stockholders expect a 20% annual return on the company's $42 million of assets Given Patterson's curent total costs, wil the company reach stockholders' proft goals? (Enter currency amounta in dollars, not in milions.) the company reach stockholders prolt gon's. There will be alan) Requirement 3. Continuing with Requirement 2. let's say that Patterson has found ways to reduce its total fixed costs by $500,000. What is the target Variable cont per con of paint Select the formula labels and enter the amounts to calculate Patterson's target variable cost per can of paint (Enter currency amounts in dollars, not in millions. Enter unit values as Whole numbers, notinos Round cost per unit amounts to the nearest cent, SXXX) Less Dvided by Requirement 4. Suppose Patterson plans to spend an additionat 54.5 million on advertising to differentiatets product in order to increase is volume to 12 milion cans and become more of a poco setter Assume that Patterson did reduce its total fried costs by $500,000 as stated in Requirement but could not find way to save on its variable conta What is the cost plus price for a can of paint under these conditions? Select the formula labels and enter the amounts to calculate Patterson's cost-plus price for a can of paint under these condition (Enter currency amounts in dollars, not in mitos Round cost ponunt amounts to the nearest cont, SX XX) Patterson Paints makes and sells paint to home improvement stores. Patterson's only plant can produce up to 13 million cans of paint per year Current annual production is 10 million cans. Fixed manufacturing, cling, and administrativo costs total $20 million per year. The variable cost of making and selling each can of paint is 56.50. Stockholders expect a 20% annual return on the company's $42 million of assets whole numbers, notin millions. Round cost per unit amounts to the nearest crot, sXXX) Less Dided by Requirement 4. Suppose Patterson plans to spend an additional 54.5 million on advertising to differentiate its product in order to increase sales volume to 12 milion cans and become more of a priestor. Assume that Patterson did reduce its total fixed costs by $600,000 as stated in Requirement 3 but could not find ways to swe on its variablo con What is the cost plus price for a can of paint under those conditions Safect the formula labels and enter the amounts to colorate Patterson's cont plus price for a con of polet under these conditions (Enter currency amounts in dollars, not in millions Round cost per unit amounts to the nearest cant $XXX) Current total costs PUS Dided by Cont plus price per unit sa price-taker and the current wholesale market price is $8.00 per can of paint. What is the target t Requirements wi ac 1. What is Patterson's current total cost of making and selling 10 million cans of paint? What is the current cost per can of paint? 2. Assume that Patterson is a price-taker and the current wholesale market price is $8.00 per can of paint. What is the target total of cost in producing and selling 10 million cans of paint? Given Patterson's current total costs, will the company reach stockholders' profit goals? 3. Continuing with Requirement 2, let's say that Patterson has found ways to reduce its total fixed costs by $500,000. What is the target variable cost per can of paint? 4. Suppose Patterson plans to spend an additional $4.5 million on advertising to differentiate its product in order to increase sales volume to 12 million cans and become more of a price-setter. Assume that Patterson did reduce its total fixed costs by $500,000 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? quid The nd

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