Plants Plus operates a commercial plant nursery where it propagates plants for garden centers throughout the region. Plants Plus has $4,750,000 in assets. Its yearly fixed costs are $600,000, and the variable costs for the potting soil, container, label, seedling, and labor for each gallon-size plant total $1.35. Plants Plus' volume is currently 490,000 units. Competitors offer the same plants, at the same quality, to garden centers for $3.60 each. Garden centers then mark them up to sell to the public for $9 to $12, depending on the type of plant. Read the requirements