Requirements of Du -X ve b 300.0 $42 volur 1. Division A of Durant, Inc. has $4,800,000 in assets. Its yearly fixed costs are $876,500, and the variable costs of its product line are $1.90 per unit. The division's volume is currently 490,000 units. Competitors offer a similar product, at the same quality, to retailers for $4.25 each. Durant's management team wants to earn a 6% return on investment on the division's assets. a. What is Division A's target full product cost? b. Given the division's current costs, will Division A be able to achieve its target profit? C. Assume Division A has identified ways to cut its variable costs to $1.75 per unit. What is its new target fixed cost? Will this decrease in variable costs allow the division to achieve its target profit? d. Division A is considering an aggressive advertising campaign strategy to differentiate its product from its competitors. The division does not expect volume to be affected, but it hopes to gain more control over pricing. If Division A has to spend $90,000 next year to advertise and its variable costs continue to be $1.75 per unit what will its cost-plus price be? Do you think Division A will be able to sell its product at the cost-plus price? Why or why not? 2. The division manager of Division B received the following operating income data for the past year Click the icon to view the Division B operating income data) The manager of the division is surprised that the T205 product line is not profitable. The division accountant estimates that dropping the T205 product line will decrease fixed cost of goods sold by $77,000 and decrease fixed selling and administrative expenses by $14.000 a. Prepare a differential analysis to show whether Division B should drop the T205 product line inpl Print Done 16 AM Check non Google Chrome 7w Smith Fall 2020 mework: Project 4 Score: 17 89 of 50 pts for compete) HW SCO COMP26-1 (similar to) David Durant, macetylockholder and president Durant the working with his tog stanagers an lure plans for the company to be company namugetal accountant you've been asked to analyze the followed make recommendations to the Read Requirement 1. A of Det har 400.000 at the yearly feed costs $378 500 and to rest Theo's volumes 49000 Composter Similar product at the sitta retale for 54 25each Dugem was to this Ta Whats Attil product Rea De Yatrodotto