Stepford Paints makes and sells paint to home Improvement stores. Stepford's only plant can produce up to 19 million cans of paint per year. Current annual production is 16 million cans. Fixed manufacturing, selling, and administrative costs total $16 million per year. The variable cost of making and selling each can of paint is $6.30. Stockholders expect a 15% annual return on the company's $43 trillion of assets. Read the requirements, Requirement 3. Continuing with Requirement 2, let's say that Stepford has found ways to reduce its total fixed costs by $240,000. What is the target variable cost per can of paint? Select the formula labels and enter the amounts to calculate Stepford's target variable cost per can of paint. (Enter currency amounts in dollars, not in millions. Enter unit values as whole numbers, not in millions. Round cost per unit amounts to the nearest cent. $X.XX.) $ 110.350,000 15,760,000 Target total cost Less: Fixed costs Target total variable costs Divided by: Number of units Target variable cost per unit $ 94,590,000 15.000.000 5.91 Requirement 4. Suppose Stepford plans to spend an additional $2.5 million on advertising to differentiate its product in order to increase sales volume to 18 million cans and become more of a price-setter. Assume that Stepford did reduce its total fixed costs by $240.000 as stated in Requirement 3 but could not find ways to save on its variable costs. What is the cost-plus price for a can of paint under these conditions? Select the formula labels and enter the amounts to calculate Stepford's cost-plus price for a can of paint under these conditions. (Enter currency amounts in dollars, not in millions. Round cost per unit amounts to the nearest cent. $X.XX.) Total variable costs 15750000 Total fixed costs 18,200,000 Cument total costs 34010000 Plus: Desired profit 6,450,000 Target revenue Divided by: Number of units 18,000,000 Cost-plus price per unit Help Me Solve This Video Get More Help Clear All Check