X P8-48A (similar to) Question Help Nature Place operates a commercial plant unery where i propagates paris for garden centers throughout the region. Nature Pace has 4 milion in assets. Its yearly feed costs are 600.000, and the variable costs for the polingo container, label, seeding and labor for each galon sired plant for 1.15. Nature Places volume is curry 410.000 i Compens for the same quality plants to garden centers for $3.40 each Garden Centers that the public torso to $11, depending on the type of plant Read the resuirements Requirement 1. Nature Place owners want to cam a 13% return on the company's What is Nature Poes welcom? Calculate the target full out for Nature Place Select the formula labels and enter the amounts. Revenue of current market price Target full cost mula lal * Requirements 1. Nature Place owners want to earn a 13% return on the company's assets. What is Nature Place's target full cost? 2. Given Nature Place's current costs, will its owners be able to achieve their target profit? Show your analysis. 3. Assume that Nature Place has identified ways to cut its variable costs to $1.00 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. Nature Place started an aggressive advertising campaign strategy to differentiate its plants from those grown by other nurseries. Nature Place doesn't expect volume to be affected, but it hopes to gain more control over pricing. If Nature Place has to spend $120,000 this year to advertise and its variable costs continue to be $1.00 per unit, what will its cost-plus price be? Do you think Nature Place will be able to sell its plants to garden centers at the cost-plus price? Why or why not? Print Done CV Question Help E8-22A (similar to Vera Preston Sunglasses sell for about $136 per pair Suppose the company incurs the following average costs per pair Tick the icon to view the cost information) Vera Preston has enough ide capacity to accept a one-time on social order from Rolling for 20.000 pair of sung s70 per par. Vera Preston will not in any write marketing expenses for the order Read the requirements Requirement 1, How would accepting the onder alleet Vera Preston operating income? in demon to the medial order' effect on protto, what other toner som stave, factors would Vers Preston'y narazen considerin dediting whew to accept the order? Prepare an incremental analysis to determine the special orders offect on operating income (Entra "out any problem. Ut perestre era in v to name a decrease in operating come to the recorder) Total Order Incremental Analysis of Special Sales Order Decision (23,000 units Revenue from special order Loss variable expense associated with the order Variable manufacturing costs Per Unit Contribution margin Less: Additional forced expenses associated with the order Increase (decrease) in operating income from the special order perating income? In addition to the special orders erect on protits, nat (longe on o Data Table ate a dec Direct materials $ 42 Direct labor 14 16 Variable manufacturing overhead 10 Variable marketing expenses 3 Fixed manufacturing overhead $ 85 Total cost $2,000,000 total fixed manufacturing overhead / 125,000 pairs of sunglasses Print Done er's ef rea A Requirements - X sion 1. How would accepting the order affect Vera Preston's operating income? In addition to the special order's effect on profits, what other (longer-term qualitative) factors should Vera Preston's managers consider in deciding whether to accept the order? 2. Vera Preston's marketing manager, Jim Revo, argues against accepting the special order because the offer price of $70 is less than Vera Preston's $85 cost to make the sunglasses. Revo asks you, as one of Vera Preston's staff accountants, to explain whether his analysis is correct der Print Done