Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Requirements 1. What is Linberg's current total cost of making and selling 8 million cans of paint? What is the current cost per can of

image text in transcribed
image text in transcribed
image text in transcribed
Requirements 1. What is Linberg's current total cost of making and selling 8 million cans of paint? What is the current cost per can of paint? 2. Assume that Linberg is a price-taker and the current wholesale market price is $8.10 per can of paint. What is the target total of cost in producing and selling 8 million cans of paint? Given Linberg's current total costs, will the company reach stockholders' profit goals? 3. Continuing with Requirement 2 , let's say that Linberg has found ways to reduce its total fixed costs by $290,000. What is the target variable cost per can of paint? dollar and round the cost per unit to the nearest cent, $ X.XX.) Plus: Divided by: Total cost per unit Linberg Paints makes and sells paint to home improvement stores. Linberg's only plant can produce up to 11 million cans of paint per year. Current annual production is 8 million cans. Fixed manufacturing, selling, and administrative costs total $8.8 million per year. The variable cost of making and selling each can of paint is $6.10. Stockholders expect a 10% annual retum on the company's $37 million of assets. Read the requirements. dollar and round the cost per unit to the nearest cent. $.) Requirements 1. What is Linberg's current total cost of making and selling 8 million cans of paint? What is the current cost per can of paint? 2. Assume that Linberg is a price-taker and the current wholesale market price is $8.10 per can of paint. What is the target total of cost in producing and selling 8 million cans of paint? Given Linberg's current total costs, will the company reach stockholders' profit goals? 3. Continuing with Requirement 2 , let's say that Linberg has found ways to reduce its total fixed costs by $290,000. What is the target variable cost per can of paint? dollar and round the cost per unit to the nearest cent, $ X.XX.) Plus: Divided by: Total cost per unit Linberg Paints makes and sells paint to home improvement stores. Linberg's only plant can produce up to 11 million cans of paint per year. Current annual production is 8 million cans. Fixed manufacturing, selling, and administrative costs total $8.8 million per year. The variable cost of making and selling each can of paint is $6.10. Stockholders expect a 10% annual retum on the company's $37 million of assets. Read the requirements. dollar and round the cost per unit to the nearest cent. $.)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Outsourcing Dilemma Whats Best For Internal Auditing

Authors: Larry E. Rittenberg, Institute Of Internal Auditors Research Foundation, Lee A. Campbell

1st Edition

0894133845, 978-0894133848

More Books

Students also viewed these Accounting questions