Nature Place | |
1.Revenue 600,000*3.90 | 2,340,000 |
Less: Desired Profit 6,000,000*14% | 840,000 |
Target full cost | 1,500,000 |
2.Fixed costs | 900,000 |
Variable costs | 690,000 |
Total full cost | 1,590,000 |
Higher than target cost | |
Target Full cost | 1,500,000 |
Less: Reduced variable cost | 600,000 |
New target fixed costs | 900,000 |
Will be able to achieve | |
4.Variable cost | 600,000 |
Fixed costs | 900,000 |
Advertising cost | 72,000 |
Total cost | 1,572,000 |
Plus: Desired Profit | 840,000 |
Target Revenue | 2,412,000 |
Divided by Number of units | 600,000 |
Cost plus price | 4.02 |
If the campaign is successful, otherwise a expensive |
Nature Place operates a commercial plant nursery where it propagates plants for garden centers throughout the...
Nature Place operates a commercial plant nursery, where it propagates plants for garden centers throughout the region. Nature Place has $5,100,000 in assets. Its yearly fixed costs are $600,000 and the variable costs for the potting soil, container, label, seedling and labor for each gallon-size plant total $1.25. Nature Place's volume is currently 500,000 units. Competitors offer the same plants, at the same quality to garden centers for $3.50 each. Garden centers then mark them up to sell to the...
Question 2: Nature Place operates a commercial plant nursery, where it propagates plants for garden centers throughout the region. Nature Place has $5,100.000 in assets. Its yearly fixed costs are $600.000 and the variable costs for the potting soil, container, label, seedling, and labor for each gallon-size plant total $1.25. Nature Place's volume is currently 500,000 units. Competitors offer the same plants, at the same quality, to garden centers for $3.50 each. Garden centers then mark them up to sell...
Plant City operates a commercial plant nursery where it propagates plants for garden centers throughout the region. Plant City has $5.25 million in assets. Its yearly fixed costs are $668,500, and the variable costs for the potting soil, container, label, seedling, and labor for each gallon-sized plant total $1.20. Plant City's volume is currently 490,000 units. Competitors offer the same quality plants to garden centers for $3.70 each. Garden centers then mark them up to sell to the public for...
Garden House operates a commercial plant nursery where it propagates plants for garden centers throughout the region Garden House has $3.5 million in assets. Its yearly fixed costs are $470,000, and the variable costs for the potting soil, container, label, seedling, and labor for each gallon-sized plant total $160. Garden House's volume is currently 500,000 units. Competitors offer the same quality plants to garden centers for $3.30 each Garden Centers then mark them up to sell to the public for...
Nature's House operates a commercial plant nursery where it propagates plants for garden centers throughout the region.Nature's House has $5.8 million in assets. Its yearly fixed costs are $742,000,and the variable costs for the potting soil, container, label, seedling, and labor for each gallon-sized plant total $1.55.Nature's House'svolume 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 $8 to $9,depending on...
Positive rating given upon completion thank you! Garden House operates a commercial plant nursery where it propagates plants for garden centers throughout the region. Garden House has $6.85 million in assets. Its yearly fixed costs are $584,000, and the variable costs for the potting soil, container, label, seedling, and labor for each gallon-sized plant total $1.65. Garden House's volume is currently 470,000 units. Competitors offer the same quality plants to garden centers for $4.20 each. Garden centers then mark them...
ates a commercial plant nursery where it propagates plants tor garden centers Garden Away opera and the variable costs for the poting soil container, label, seedling, and quality plants to garden centers for $3.70 each Garden centers then mark them up to sel to the public for $8 10 $10 Away has $5,25 milion in assets. Its yearly fxed costs are $668,500. labor for each gallon-sized plant total $1 20. Garden Away's volume is 490,000 unts, Competitors offer the same...
(L.OBJ. 2) Making special order and pricing decisions [15-20 min] Garden House operates a commercial plant nursery where it propagates plants for garden centers throughout the region. Garden House has $5,000,000 in assets. Its yearly fixed costs are $625,000 and the variable costs for the potting soil, container, label, seedling, and labor for each gallon-size plant total $1.70. Garden House's vol- ume is currently 500,000 units. Competitors offer the same plants, at the same qual- ity, to garden centers for...
A Requirements 1. Garden Away owners want to earn a 12% return on the company's assets. What is Garden Away's target full cost? 2. Given Garden Away's current costs, will its owners be able to achieve their target profit? Show your analysis. 3. Assume that Garden Away has identified ways to cut its variable costs to $1.10 per unit. What is its new target fixed cost? Will this decrease in variable costs allow the company to achieve its target profit?...
Data Table -X Land $ 51,000 Construction 121,000 5,000 Landscaping Variable selling costs 2,000 Print Done Requirements - X 1. Which approach to pricing should Smith Builders emphasize? Why? 2. Will Smith Builders be able to achieve its target profit levels? 3. Bathrooms and kitchens are typically the most important selling features of a home. Smith Builders could differentiate the homes by upgrading the bathrooms and kitchens. The upgrades would cost $30,000 per home but would enable Smith Builders to...