2 QUESTION TWO (22 MARKS-) Compulsory Fandy Coperation is a manufacturing company based in Dubai and established in 2010 I currently produces and sells three products M15, M25 and M35. Given market research, Foody has developed a new product M45 The company plans to sell its new product through its catalogue, which it issues monthly. The company is currently in the process of setting a selling price for a new product. The following financial data relate to this product for a budgeted volume of 60,000 units Foody uses cost-plus pricing to set its target selling price. The mark-up on total unit cost is AP%% Dopet materials Direct labose) able manufacturing overhead Fixed manufacturing head Vishle selling and administrative exgeme Food selling and administrative expens Instructions $1,920,000 $2,400,000 $10 per unit $1,500,000 S per unit $1,500,000 QIXA Instructions 1. Compute the Target Selling Price (12Marks 2. Assume the new product requires an investment of $12,000,000 to be manufactured, and the company wants to achieve ROI of 20% Compute the NEW mark-up percentage; and the NEW Target Selling Price (10Marks) 3. Explain when the cose ples is preferred to be used as a pricing method and its limitations (3 Bonus Marks). T T TTT Paragraph Arial i : 3 (12pt) 2