1 Sonic Electrical Ltd (SE Ltd) assembles many types of electrical goods for home usage. The design department of the company is now venturing into a new product called 'Robotic Carpet Cleaner' (RCC) for home usage. The RCC will be assembled by their factory workers using a variety of components such as a pump, vacuum, dust basket, engine, casing, and wheels. Production overheads are currently absorbed based on labour hours. SE Ltd is considering a target costing approach for this new product, so that the product can sustain the competition from other brands in a competitive market. Appraise the information given below with regards to the production and sales of RCC and answer the question there-after: 1) Pump - each unit of RCC will require two units of the pump. These pumps are currently bought from a supplier in Indonesia at a price of $80.00 per unit. They can be purchased in batches of 200 units or 400 units. Sea-freight charges are fixed at $800 per batch and are billed separately by the supplier. If SE Ltd buys in batches of 400 units, the unit price will be reduced to $70.00. Choose the cheaper option. 2) Vacuum - is