Requirements 1. Nature Place's owners want to earn an 11% return on investment on the company's assets. What is Nature Place's target full product cost? 2. Given Nature Place's current costs, will its owners be able to achieve their target profit? 3. Assume Nature Place 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. Nature Place started an aggressive advertising campaign strategy to differentiate its plants from those grown by other nurseries. Nature Place does not expect volume to be affected, but it hopes to gain more control over pricing. If Nature Place has to spend $80,000 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 Nature Place will be able to sell its plants to garden centers at the cost-plus price? Why or why not