senters tren mark then vo b sel to the oublic for 58 to 510 , deperding on the twe of plant Ploes Citys arrent fotal full conts of its target full cost. Plare Ciy meet the owner's peoft expectifions. your analyia. The new targm fand cose ia Br tedieng varable coate to St. os, Mant Coy cercers at the coen plus proe? Why or why mot? centers at ew cond-plus prion? Why or why not? Determite its cost-plis price. (flound the cestrelus prich to the neariest cent.) Requirements 1. Plant City owners want to earn a 12% return on the company's assets. What is Plant City's target full cost? 2. Given Plant City's current costs, will its owners be able to achieve their target profit? Show your analysis. 3. Assume that Plant City has identified ways to cut its variable costs to $1.05 per unit. What is its new target fixed cost? Will this decrease in variable costs allow the company to achieve its target profit? Show your analysis. 4. Plant City started an aggressive advertising campaign strategy to differentiate its plants from those grown by other nurseries. Plant City doesn't expect volume to be affected, but it hopes to gain more control over pricing. If Plant City has to spend $53,900 this year to advertise and its variable costs continue to be $1.05 per unit, what will its cost-plus price be? Do you think Plant City will be able to sell its plants to garden centers at the cost-plus price? Why or why not? senters tren mark then vo b sel to the oublic for 58 to 510 , deperding on the twe of plant Ploes Citys arrent fotal full conts of its target full cost. Plare Ciy meet the owner's peoft expectifions. your analyia. The new targm fand cose ia Br tedieng varable coate to St. os, Mant Coy cercers at the coen plus proe? Why or why mot? centers at ew cond-plus prion? Why or why not? Determite its cost-plis price. (flound the cestrelus prich to the neariest cent.) Requirements 1. Plant City owners want to earn a 12% return on the company's assets. What is Plant City's target full cost? 2. Given Plant City's current costs, will its owners be able to achieve their target profit? Show your analysis. 3. Assume that Plant City has identified ways to cut its variable costs to $1.05 per unit. What is its new target fixed cost? Will this decrease in variable costs allow the company to achieve its target profit? Show your analysis. 4. Plant City started an aggressive advertising campaign strategy to differentiate its plants from those grown by other nurseries. Plant City doesn't expect volume to be affected, but it hopes to gain more control over pricing. If Plant City has to spend $53,900 this year to advertise and its variable costs continue to be $1.05 per unit, what will its cost-plus price be? Do you think Plant City will be able to sell its plants to garden centers at the cost-plus price? Why or why not
