16 (24 points) Kim Composite Poles manufactures fishing poles that have a price of $125.00. It has costs of $90. A competitor is introducing a new fishing pole that will sell for $110.00. Management believes it must lower the price to $110.00 to compete in the highly cost-conscious fishing pole market. Marketing department believes that the new price will allow Kim to maintain the current sales level of 200,000 poles per year. Question One What is the target cost per unit for the new price if target operating income is 25% of sales? A/ A/ Question Two What is the change in operating income for the year if only the selling price is changed and costs remain the same? Example of Answer: 4000 or -40000 No space, comma, decimal point, or $ sign. Indicate a decrease with a "-" Question Three What is the target cost per unit if the selling price is reduced to $110.00 and the company wants to maintain its same income level? A Example of Answer: 5.65 or 5.60 or 5.00 Two decimal points. No space, comma, or $ sign. Question 15 (12 points) Mario Company produces three products - X, Y, & Z -- with the following characteristics: X Y Z Demand per month in units 2000 1500 3000 Selling price per unit $20 $15 $16 Variable cost per unit $11 $7 $12 Machine hours needed per unit 5 5 2 The company has only 20,000 machine-hours available each month. How many units of product X, Y, and Z, respectively, should be produced to maximize Ret operating income? Example of Answer: X-4000 Y=5000 Z=6000 No space, comma, decimal point, or $ sign. Number of units of product X = Number of units of product X = Number of units of product Y= Number of units of product Z= PJ