Robinson Industries makes tennis balls. Robinson's only plant can produce up to 6.4 million cans of balls per year. Current production is 6 million cans. Annual manufacturing, selling, and administrative fixed costs total $1,200,000. The variable cost of making and selling each can of balls is $3. Stockholders expect a 10% annual return on the company's $5 million of assets. Read the requirements. Requirement 1. What is Robinson Industries' current total cost of making and selling 6 million cans of tennis balls? What is the total cost per unit of making and selling each can of balls? (Enter the total cost per can to the nearest cent.) Total variable costs 6,000,000 1,200,000 Plus: Fixed costs Current total costs 7,200,000 Divided by: Number of units Total cost per can 1. 2. 3. 4. What is Robinson Industries' current total cost of making and selling 6 million cans of tennis balls? What is the total cost per unit of making and selling each can of balls? Assume that Robinson Industries is a price-taker and the current market price is $2.25 per can of balls (this is the price at which manufacturers sell to retailers). What is the target total cost of producing and selling six million cans of balls? Given Robinson Industries' current total costs, will the company reach stockholders' profit goals? If Robinson Industries cannot reduce its fixed costs, what is the target variable cost per can of balls? Suppose Robinson Industries could spend an extra $700,000 on advertising to differentiate its product so that it could be more of a price-setter. Assuming the original volume and costs plus the $700,000 of new advertising costs, what cost-plus price will Robinson Industries want to charge for a can of balls? Pro Shop has just asked Robinson Industries to supply 300,000 cans of balls at a special order price of $3.15 per can. Pro Shop wants Robinson Industries to package the balls under the Pro Shop label (Robinson will imprint the Pro Shop logo on each ball and can). As a result, Robinson Industries will have to spend $18,000 to change the packaging machinery. Assuming the original volume and costs, should Robinson Industries accept this special order? Assume that Robinson will incur variable selling costs as well as variable manufacturing costs related to this order. 5