Jamison Paints makes and sells paint to home improvement stores. Jamison\'s only

Question

Jamison Paints makes and sells paint to home improvement stores. Jamison's only plant can produce up to 12 million cans of paint per year. Current annual production is 10 million cans. Fixed manufacturing, selling, and administrative costs total $15 million per year. The variable cost of making and selling each can of paint is $6.00. Stockholders expect a 15% annual return on the company's $40 million of assets Read the requirements Requirement 1. What is Jamison's current total cost of making and selling 10 million cans of paint? What is the current cost per can of paint? Select the formula labels and enter the amounts to calculate Jamison's current total cost and current cost per can of paint. (Enter currency amounts in dollars, not in millions. Enter unit values as whole numbers, not in millions. Round all currency amounts to the nearest whole dollar and round the cost per unit to the nearest cent, $X.XX.) Plus: Divided by Total cost per unit

Explanation / Answer

1. Variable cost (10,000,000×$6)=$60,000,000

Add fixed cost =$15,000,000

Total cost=$75,000,000

Unit produce=10,000,000

Total Cost per unit=$7.50 per unit

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