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Please help with the requirement parts 2-4 with this question. Thatcher Paints makes and sells paint to home improvement stores. Thatcher's only plant can produce
Please help with the requirement parts 2-4 with this question.
Thatcher Paints makes and sells paint to home improvement stores. Thatcher's only plant can produce up to 14 milion cane of paint per year. Current annual production is 11 milion cens. Fixed manufacturing Belling, and administrative costs total $18.7 million per year. The variable cost of making and selling each can of paint is $5.90. Stockholders expect & 20% annual retum on the company's S35 million of assets Read the requirements. TI Requirement 1. What is Thatcher's current all cost of making and selling 11 trillion cans af paint? What is the currerit cost percent of paint? Select the formua labels and enter the amounts to calculale Thatcher's current local cos. and current cost per can of paint (Enter currency amounts in dollars, not in millions. Enter unit values as whole numbere, not in milions. Round all currency amounts to the neareet whole dollar and round the cost per unit to the nearest cent, $XXX Total variable ch S 154 900 CDO Plus: Fixed on 18,700.000 Current total costs SB3,000,000 DMced by: Number of units 11,000,000 S 7.80 Total cost per unit Requirement 2. Assume that Thatcher is a price-laker and the current wildlesale market price is $7.90 per can af paint. What is the larget total of cost in producing and selling 11 million cans of paint? Given Thatcher's current tolal costs will the corrparty reach sockholders prail goals? Begin by calculating Thatcher's target total cost Select the formula labels and enter the anciuits. (Enter currency amounts in dollars, natin milliers. Round all currency anciunits to the nearest whate dallar.) Less: X Requirements Target total cost 1. What is Thatcher's current total cost of making and seling 11 milion cans of paint? What is the cutent cost per can of naint? 2. Assume that Thatcher is a price-taker and the current wholesale market price is $7.90 par can of paint What is the target total of cost in producing and seling 11 milion dans of paint? Giver Thatcher's current total costs, wil the company reach stockholders' profit ganis? 3. Continuing with Requirement 2, let's say that Thatcher has found ways to reduce is total fixed costs by $240.CIC. What is tha target variable cost per can of paint? 4. Suppoee Thatcher plans to spend an additional $1.6 million on acver.ising to differentiate is product In order to increase sales volume to 11.5 million cans and become more of a price-settar Assume that Thatcher did reduce its total fixed costs by $240.000 Slater in Requirement but could not find ways to as Save on ils variable costs. What is the cast-plus price for a can af paint under these conditions? Calculator Clear all CheckStep by Step Solution
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