Question: Please help me solve requirements 1-4. Really need the help! costs total $9 million per year. The variable cost of making and selling each can

Please help me solve requirements 1-4. Really need the help!
costs total $9 million per year. The variable cost of making and selling each can of paint is $6.40. Stockholders expect a 20% annual retum on the company's $35 million of assets. Read the reguirements. Requirement 1. What is Schindler's current total cost of making and selling 9 million cans of paint? What is the current cost per can of paint? all currency amounts to the nearest whole dollar and round the cost per unit to the nearest cent, $.XX.) Requirements 1. What is Schindler's current total cost of making and selling 9 million cans of paint? What is the current cost per can of paint? 2. Assume that Schindler is a price-taker and the current wholesale market price is $8.90 per can of paint. What is the target total of cost in producing and selling 9 million cans of paint? Given Schindler's current total costs, will the company reach stockholders' profit goals? 3. Continuing with Requirement 2, let's say that Schindler has found ways to reduce its total fixed costs by $330,000. What is the target variable cost per can of paint? 4. Suppose Schindler plans to spend an additional $1.8 million on advertising to differentiate its product in order to increase sales volume to 11 million cans and become more of a price-setter. Assume that Schindler did reduce its total fixed costs by $330,000 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
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
