4. A company has designed a new product. NPB. It is currently estimated that in the current market, the product could be sold for RM70 per unit. A gross profit margin of at least 30% on the selling price would be required, to cover administration and marketing overheads and to make an acceptable level of profit. A cost estimation study has produced the following estimate of production cost for NP8. Direct material M1 RM9 per unit Direct material M2 Each unit of product NPS will require three metres of material M2, but there will be a loss in production of 10% of the material used. Material M2 costs RM1.80 per metre Direct labour Each unit of product NP8 will require 0.50 hours of direct labour time. However, it is expected that there will be unavoidable idle time equal to 5% of the total labour time paid for. Labour is paid RM19 per hour Production It is expected that production overheads will be absorbed into product costs at the overheads rate of RM60 per direct labour hour, for each active hour worked. (Overheads are not absorbed into the cost of idle time.) Required to calculate: a. the expected cost of Product NPB; b. the target cost for NPS; c. the size of the cost gap