8.Explain why answers 2-4 in comparison to 5-7 are the same or different.

9.Discuss the advantages and disadvantages of using a cost-based pricing model. You need to include an outside reference that supports your discussion on advantages and disadvantages of using a cost-based pricing model. Make sure you include the reference in APA style.Enter your response in the textbox below.

This company expects to earn an annual return on the assets invested at a rate of: 16% The company has the following amount invested in the business: $6,000,000 7 The annual budgeted costs for next year are: Variable costs Fixed costs Total Costs 9 Support Services $400,000 1,900,000 $2,300,000 $3,260,000 10 11 The annual budgeted hours for next year are: 12 Consulting services 50,000 hours 13 14 Required: You must use cell references for all calculations. 15 1. Determine the Target profit for the company. 16 $960,000 17 2. Determine the markup on variable costs in percentage terms 18 240% 19 3. Determine the variable cost per hour. 20 $8.00 21 4. Determine the revenue per hour that will be charged if variable costs is the basis for markup. 22 Total Cost + Target Profit Total Revenue/Total Hours Total Revenue $3,260,000 23 $960,000 $65.20 24 5. Determine the markup on total costs in percentage terms. 25 41.74% 26 6. Determine the total cost per hour. 27 $46.00 28 7. Determine the revenue per hour that will be charged if total costs is the basis for markup 29 $19.20 30 8. Explain why answers 2-4 in comparison to 5-7 are the same or different. 31 32 33 34 9. Discuss the advantages and disadvantages of using a cost-based pricing model. 35 You need to include an outside reference that supports your discussion on advantages and disadvantages of using a cost-based pricing model. 36 Make sure you include the reference in APA style. Enter your response in the textbox below. 37 38 39 40 41 42