What is Wyndham's current total cost of making and selling million cans
of paint? What is the current cost per can of paint?
Assume that Wyndham is a pricetaker and the current wholesale market
price is $ per can of paint. What is the target total of cost in producing
and selling million cans of paint? Given Wyndham's current total costs, will
the company reach stockholders' profit goals?
Continuing with Requirement let's say that Wyndham has found ways to
reduce its total fixed costs by $ What is the target variable cost per
can of paint?
Suppose Wyndham plans to spend an additional $ million on advertising to
differentiate its product in order to increase sales volume to million cans
and become more of a pricesetter. Assume that Wyndham did reduce its
total fixed costs by $ as stated in Requirement but could not find
ways to save on its variable costs. What is the costplus price for a can of
paint under these conditions?
