Summary Problem 8-1 (similar to) Question Help Wilson Industries makes tennis balls. Wilson's only plant can produce up to 7.4 million cans of balls per year. Current production is seven million cans. Annual manufacturing, selling, and administrative fixed costs total $2,800,000. The variable cost of making and selling each can of balls is $3. Stockholders expect a 12% annual return on the company's $7 million of assets. Read the requirements Requirement 1. What is Wilson Industries' current total cost of making and selling seven million cans of tennis balls? What is the current cost per unit of each can of tennis balls? (Enter the current cost per can to the nearest cent.) Plus: Current total costs Divided by: Current cost per can Requirements 1. 2. 3. 4. What is Wilson Industries' current total cost of making and selling seven million cans of tennis balls? What is the current cost per unit of each can of tennis balls? Assume that Wilson Industries is a price-taker and the current market price is $3.30 per can of balls (this is the price at which manufacturers sell to retailers). What is the target total cost of producing and selling seven million cans of balls? Given Wilson Industries' current total costs, will the company reach stockholders' profit goals? If Wilson Industries cannot reduce its fixed costs, what is the target variable cost per can of balls? Suppose Wilson Industries could spend an extra $2,660,000 on advertising to differentiate its product so that it could be more of a price-setter. Assuming the original volume and costs plus the $2,660,000 of new advertising costs, what cost-plus price will Wilson Industries want to charge for a can of balls? Just - for - Player has just asked Wilson Industries to supply 300,000 cans of balls at a special order price of .15 per can. Just - for - Player wants Wilson Industries to package the balls under the Just - for - Player label (Wilson will imprint the Just - for - Player logo on each ball and can). As a result, Wilson Industries will have to spend $35,000 to change the packaging machinery. Assuming the original volume and costs, should Wilson Industries accept this special order? (Assume that Wilson will incur variable selling costs as well as variable manufacturing costs related to this order.) 5. Print Done Choose from any list or enter any number in the input fields and then click Check Answer. parts remaining Clear All Check