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practically done please complete part 4 only will upvote Requirement 4. Suppose Wyndham plans to spend an additional $2.1 million on advertising to differentiate its
practically done please complete part 4 only will upvote
Requirement 4. Suppose Wyndham plans to spend an additional $2.1 million on advertising to differentiate its product in order to increase sales volume to 15.5 million cans and become more of a price-setter. Assume that Wyndham did reduce its total fixed costs by $310,000 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 ? Select the formula labels and enter the amounts to calculate Wyndham's cost-plus price for a can of paint under these conditions. (Enter currency amounts in dollars, not in millions, Round cost per unit amounts to the nearest cent, SX XX) Total variable costs Total foxed costs 36.290,000 Current total costs Plus Desired profit Target revenue Divided by Number of units 15,500,000 Cost-plus price per unit Wyndham Paints makes and sells paint to home improvement stores. Wyndham's only plant can produce up to 17 million cans of paint per year. Current annual production is 15 million cans. Fixed manufacturing, selling, and administrative costs total $34.5 million per year. The variable cost of making and selling each can of paint is $5.50. Stockholders expect a 15% annual return on the company's $36 million of assets Read the requirements Requirement 1. What is Wyndham's current total cost of making and selling 15 million cans of paint? What is the current cost per can of paint? Select the formula tabels and enter the amounts to calculate Wyndham's current total cost and current cost per can of paint. (Enter currency amounts in dollars, not in millions. Enter unit values as whole numbers, not in milions. Round all currency amounts to the nearest whole dollar and round the cost per unit to the nearest cent, $XXX) Total variable costs $ 82,500,000 Plus: Fixed costs 34,500,000 Current total costs $ 117.000.000 Divided by Number of units 15.000.000 Total cost per unit 7.80 Requirement 2. Assume that Wyndham is a price-taker and the current wholesale market price is $6.00 per can of paint. What is the target total of cost in producing and selling 15 million cans of paint? Given Wyndham's current total costs, will the company reach stockholders' profit goals? Begin by calculating Wyndham's target total cost. Select the formula labels and enter the amounts. (Enter currency amounts in dollars, not in millions. Round all currency amounts to the nearest whole dollar) Revenue at market price 90,000,000 Loss: Desired profit 5,400,000 Target total cost 84.600.000 Given Wyndham's current total costs, will the company reach stockholders' profit goals? (Enter currency amounts in dollars. niot in milliens.) the company will not reach stockholders' profit goals. There will be (an) $ 32,400,000 shortfall Requirement 3. Continuing with Requirement 2, let's say that Wyndham has found ways to reduce its total fixed costs by $310,000. What is the target variable cost per can of paint? Select the formula labels and enter the amounts to calculate Wyndham's target variable cost per can of paint. (Enter currency amounts in dollars, not in millions Enter unit values as whole numbers, not in millions. Round cost per unit amounts to the nearest cent, SXXX) Target total cost 84,600,000 Less: Fixed costs 34.190,000 Target total variable costs 50,410,000 Divided by Number of units 15,000,000 Target variable cost per unit No $ $ 3.36 Step by Step Solution
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