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Plants Galore operates a commercial plant nursery where it propagates plants for garden centers throughout the region Plants Galore has 55.8 million in assets. Its yoarly fixed costs are 5742.000 and the variable costs for the potting so container, label, seedling, and labor for each gallon-sized plant total $1,55. Plants Galore's volume is currently 575,000 units Competitors offer the same quality plants to garden centers for $3,80 each Garden centers then mark them up to sell to the public for 58 to $10, depending on the type of plant Read the requirements Requirement 1. Plants Galore owners want to eam an 11% return on the company's assets. What is Plants Galore's target full cost? Calculate the target full cost for Plants Galore Select the formula labels and enter the amounts Less Target lost Requirement 2. Given Plants Galore's current costs, will its owners be able to achieve their target profit? Show your analysin Calculate Plants Galore's current total fil cost. Select the formula labels and enter the amounts, Total cost Plants Galore's current total costs of its target full coal Plants Galore meet the owner's profit expectations Requirement 3. Assume that Plants Galore has identified ways to cut its variable costs to 51.40 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 Target full cont Plants Galore operates a commercial plant nursery where it propagate plants for garden centers throughout the region Plants Galore has 558 million in assets. Its yourly foxed costs Requirement 3. Assume that Plants Galore has identified ways to cut its variable conts to 51 40 per unit. What is its now target fixed cost? Will this decrease in variable costs allow the company to achieve its target profit? Show your analysis Targetful cost tes: Reduced level of variable costs New target fixed cost The new target fixed cost is By reducing variable costs to $1.40, Plants Galore be able to achieve its target profit without having to take any other cost cutting measures Requirement 4. Plants Galore started an aggressive advertising campaign strategy to differentiate its plants from those grown by other nurseros. Plants Galore doon't expect volume to be affected, but it hopes to gain more control over pricing. If Plants Galore has to spend $57,500 this year to advertise and its vanable costs continue to be $1 40 per unit what will its cost-plus price bo? Do you think Plants Galore will be able to sell its plants to garden centers at the cost-plus price? Why or why not? Determine its cost plus price (Round the cost-plus price to the nearest cent) Plus Plus Target revenue Divided by Cost-plus rice per unit Plants Galore operates a WH LOVE Xilon in assets. Its yearly fixed costs Requirements Target full cost Loss Reduced level of New target fixed costs forget profit without having to take The new targeted cost any other cost cutting med Requirement 4. Plants volume to be affected, but what will its cost plus rico Determine its cost plus 1. Plants Galore owners want to cam an 11% return on the company's assets What is Plants Galore's target fut cost? 2. Given Plants Galore's current costs, wil is owners be able to achieve their target profie? Show your analysis 3. Assume that Plants Galore has identified ways to cut its variable costs to $140 per unit. What its new target fixed cost? Will this decrease in variable costs alow the company to achieve its target profit? Show your analysis 4. Plants Galore started in aggressive advertising campaign strategy to differentiate its plants from those grown by other nurseries. Plants Galore doesn't expect volume to be affected, but it hopes to gain more control over pricing Plants Galore has to spend $57,500 this year to advertise and its variable costs continue to be $146 per unit, what will its plus probe? Do you think Plants Galore will be able to sell its plants to gardon centers at the cosplus price? Why or why not? Plants Galore doesn't expect osts continue to be $1.40 perunt P Print Done DUN Tapetovano Divided by Costolus ce per unit Consumers will be more willing to pay the cont plus price if the marketing campaign in Otherwise Plants Galore may be considered a nursery

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