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Smith Industries makes tennis balls Smith's only plant can produce up to 24 million cans of balls per year Current production is 2 million cons

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Smith Industries makes tennis balls Smith's only plant can produce up to 24 million cans of balls per year Current production is 2 million cons Annual manufacturing, selling and administrative feed costs total 5800,000. The variable cout of making and selling each can of boils is 52. Stockholders expect a 15% annual return on the company's $1 million of assets Read the rectements Requirement 1. What is Smith Industries current total cost of making and selling 2 million can oftennis balls? What is the total cost per unifof making and selling each can of balls? (Enter the total cost per tanto the nearest cent Plus Current total costs Divided by: Total cost per can 1. 2. making a 3. 4. What is Smith Industries' current total cost of making and selling 2 million cans of tennis balls? What is the total cost per unit of making and selling each can of balls? Assume that Smith Industries is a price-taker and the current market price is $1.45 per can of balls (this is the price at which manufacturers sell to retailers). What is the target total cost of producing and selling two million cans of balls? Given Smith Industries' current total costs, will the company reach stockholders' profit goals? If Smith Industries cannot reduce its fixed costs, what is the target variable cost per can of balls? Suppose Smith Industries could spend an extra $550,000 on advertising to differentiate its product so that it could be more of a price-setter. Assuming the onginal volume and costs plus the $550,000 of new advertising costs, what cost-plus price will Smith Industries want to charge for a can of balls? Just - for -- Player has just asked Smith Industries to supply 300,000 cans of balls at a special order price of $2.25 per can Just-for-Player wants Smith Industries to package the balls under the Just-for-Player label (Smith will imprint the Just--for-Player logo on each ball and can). As a result, Smith Industries will have to spend $12,000 to change the packaging machinery. Assuming the original volume and costs, should Smith Industries accept this special order? Assume that Smith 5. Requirements 2. 3. 4. Assume that Smith Industries is a price-taker and the current market price is $1.45 per can of balls (this is the price at which manufacturers sell to retailers). What is the target total cost of producing and selling two million cans of balls? Given Smith Industries' current total costs, will the company reach stockholders' profit goals? If Smith Industries cannot reduce its fixed costs, what is the target variable cost per can of balls? Suppose Smith Industries could spend an extra $550,000 on advertising to differentiate its product so that it could be more of a price-setter. Assuming the original volume and costs plus the $550,000 of new advertising costs, what cost-plus price will Smith Industries want to charge for a can of balls? Just - for Player has just asked Smith Industries to supply 300,000 cans of balls Cat a special order price of $2.25 per can. Just -for-Player wants Smith Industries to package the balls under the Just-for-Player label (Smith will imprint the Just-for-Player logo on each ball and can). As a result, Smith Industries will have to spend $12,000 to change the packaging machinery. Assuming the original volume and costs, should Smith Industries accept this special order? Assume that Smith will incur variable selling costs as well as variable manufacturing costs related to this order 5. Smith Industries makes tennis balls Smith's only plant can produce up to 24 million cans of balls per year Current production is 2 million cons Annual manufacturing, selling and administrative feed costs total 5800,000. The variable cout of making and selling each can of boils is 52. Stockholders expect a 15% annual return on the company's $1 million of assets Read the rectements Requirement 1. What is Smith Industries current total cost of making and selling 2 million can oftennis balls? What is the total cost per unifof making and selling each can of balls? (Enter the total cost per tanto the nearest cent Plus Current total costs Divided by: Total cost per can 1. 2. making a 3. 4. What is Smith Industries' current total cost of making and selling 2 million cans of tennis balls? What is the total cost per unit of making and selling each can of balls? Assume that Smith Industries is a price-taker and the current market price is $1.45 per can of balls (this is the price at which manufacturers sell to retailers). What is the target total cost of producing and selling two million cans of balls? Given Smith Industries' current total costs, will the company reach stockholders' profit goals? If Smith Industries cannot reduce its fixed costs, what is the target variable cost per can of balls? Suppose Smith Industries could spend an extra $550,000 on advertising to differentiate its product so that it could be more of a price-setter. Assuming the onginal volume and costs plus the $550,000 of new advertising costs, what cost-plus price will Smith Industries want to charge for a can of balls? Just - for -- Player has just asked Smith Industries to supply 300,000 cans of balls at a special order price of $2.25 per can Just-for-Player wants Smith Industries to package the balls under the Just-for-Player label (Smith will imprint the Just--for-Player logo on each ball and can). As a result, Smith Industries will have to spend $12,000 to change the packaging machinery. Assuming the original volume and costs, should Smith Industries accept this special order? Assume that Smith 5. Requirements 2. 3. 4. Assume that Smith Industries is a price-taker and the current market price is $1.45 per can of balls (this is the price at which manufacturers sell to retailers). What is the target total cost of producing and selling two million cans of balls? Given Smith Industries' current total costs, will the company reach stockholders' profit goals? If Smith Industries cannot reduce its fixed costs, what is the target variable cost per can of balls? Suppose Smith Industries could spend an extra $550,000 on advertising to differentiate its product so that it could be more of a price-setter. Assuming the original volume and costs plus the $550,000 of new advertising costs, what cost-plus price will Smith Industries want to charge for a can of balls? Just - for Player has just asked Smith Industries to supply 300,000 cans of balls Cat a special order price of $2.25 per can. Just -for-Player wants Smith Industries to package the balls under the Just-for-Player label (Smith will imprint the Just-for-Player logo on each ball and can). As a result, Smith Industries will have to spend $12,000 to change the packaging machinery. Assuming the original volume and costs, should Smith Industries accept this special order? Assume that Smith will incur variable selling costs as well as variable manufacturing costs related to this order 5

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