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Plant City operates a commercial plant nursery where it propagates plants for garden centers throughout the region. Plant City has $3.5 million in assets. its

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Plant City operates a commercial plant nursery where it propagates plants for garden centers throughout the region. Plant City has $3.5 million in assets. its yearfy fixed costs are $470,000, and the variable costs for the poting soil, containec, label, soeding, and labor for each gallon-sized plant total $1,60. Plant City/s volume is currently 500,000 units. Competitors olfer the same quality plants to garden centers for $3.30 each. Garden centers then mark them up to seil to the public for $9 to $11. depending on the type of plant. Read the reguirements. Requirement 1. Plant City owners want to eam a 13% return on the company's assets. What is Plant City's target full cost? Calculate the targot full cost for Plant City, Select the formula labels and enter the amounts. Less: Target ful cost Requirement 2. Given Plant City/s current costs, will its owners be able to achleve their target profit? Show your analysis. Calculate Plant City's current total full cost Select the formula labels and enter the amounts. City has $3.5 million Requirements ant total $1.60. Plant hup to sell to the publ 1. Plant City owners want to eam a 13% return on the company's assets. What is Plant City's target full cost? 2. Given Plant City's current costs, will its owners be able to achieve their target profit? Show your analysis. 3. Assume that Plant City has identified ways to cut its variable costs to $1.45 per unit. What is its new target foxed cost? Will this decrease in variable costs allow the company to achieve its target profit? Show your analysis. 4. Plant City started an aggressive advertising campaign strategy to differentiate its plants from those grown by other nurseries. Plant City doesn't expect volume to be affected, but it hopes to gain more control over pricing. If Plant City has to spend $40,000 this year to advertise and its variable costs continue to be $1.45 per unit, what will its cost-plus price be? Do you think Plant City will be able to sell its plants to garden centers at the cost-plus price? Why or why not

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