PLEASE SHOW ALL WORK THERE ARE FOUR PARTS.

EXAMPLE OF ANSWER FORMAT!!!!@! BELOW

Requirement 1.

The following is the formula to calculate the target full product cost:

Revenue at current market price

Less: Desired profit

Target full product cost

Compute

Green Thumb's

Green Thumb's total target full product cost using the formula below.

Determine the revenue by multiplying the selling price by the number of units expected to be sold. Remember, the desired profit is

11 %

11% of total assets.

Revenue at current market price		$ 1,728,000
Less:	Desired profit	522,500
Target full product cost		$ 1,205,500

Requirement 2. Given

Number of units	x	Variable cost per unit	=	Total variable costs
480,000	x	$ 1.35	=	$ 648,000

Now calculate

Green Thumb's

Green Thumb's current full product cost.

Current variable costs		$ 648,000
Plus:	Current fixed costs	600,000
Current full product cost		$ 1,248,000

Requirement 3. Assume

Number of units	x	Variable cost per unit	=	Total variable costs
480,000	x	$ 1.20	=	$ 576,000

Target full product cost		$ 1,205,500
Less:	Variable costs	576,000
Target fixed cost		$ 629,500

Requirement 4.

Current variable costs		$ 576,000
Plus:	Fixed costs	680,000
Full product cost		$ 1,256,000

Next, using the desired profit amount that you computed when completing Requirement 1, and the full product costs you determined in the preceding step, compute the company's target revenue and use that to calculate the cost-plus price per unit. (Round your answer to the nearest cent.)

Current variable costs		$ 576,000
Plus: Fixed costs		680,000
Full product cost		$ 1,256,000
Plus: Desired profit		522,500
Target revenue		$ 1,778,500
Divided by:	Number of units	480,000
Cost-plus price per unit		$ 3.71

1. Green House's owners want to earn an 11% return on investment on the company's assets. What is Green House's target full product cost? 2. Given Green House's current costs, will its owners be able to achieve their target profit? 3. Assume Green House has identified ways to cut its variable costs to $1.20 per unit. What is its new target fixed cost? Will this decrease in variable costs allow the company to achieve its target profit? 4. Green House started an aggressive advertising campaign strategy to differentiate its plants from those grown by other nurseries. Green House does not expect volume to be affected, but it hopes to gain more control over pricing. If Green House has to spend $135,000 this year to advertise and its variable costs continue to be $1.20 per unit, what will its cost-plus price be? Do you think Green House will be able to sell its plants to garden centers at the cost-plus price? Why or why not? P25-22A (similar to) Question Help Green House operates a commercial plant nursery where it propagates plants for garden centers throughout the region. Green House has $5,100,000 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. Green House's 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. Requirement 1. Green House's owners want to earn an 11% return on investment on the company's assets. What is Green House's target full product cost? Less: Target full product cost