2 Alba Company is considering the introduction of a new product. To determine the selling price of this product, you have gathered the following information Direct material cost per unit. Direct labor cost per unit Variable manufacturing cost per unit. Total fixed manufacturing costs..... Variable selling and administration cost per unit Total fixed selling and administration costs..... $3,000 $2.250 $1,000 $1,750,000 $1.250 $550,000 If the company requires a rate of retum 18% on its investments and $6,000,000 investments are needed. The total direct materials to be used in the production is $3,000,000. Required: 1. If the company uses absorption costing approach to cost-plus pricing, compute The unit product cost The markup percentage. The selling price per unit. 2. Assume that the company is comidering the introduction of other new product. If the target-selling price per unit is 55.500 and the company investing $5,000,000 to purchase equipment needed produce 500 units. If the company requires a rate of return on its investments 18%, compute the target cost per unit