Accounting problem!

Wilderness Products, Inc., has designed a self-inating sleeping pad for use by backpackers and campers. The following information is available about the new product: a. An investment of $1,800,000 will be necessary to carry inventories and accounts receivable and to purchase some new equipment needed in the manufacturing process. The company's required rate of return is 22% on all investments. b. A standard cost card has been prepared for the sleeping pad, as shown below: Standard Standard Quantity or-Hours Price or Rate Direct materials 12 yards $ 3.60 per yard Direct labor 2.2 hours 5 2.39 per hour Manufacturing overhead (26% variable) 7.2 hours 5 11.60 per hour Total standard cost per pad Standard Cost $ 43.20 58.40 29.20 $122.80 c The only variable selling and administrative expense will be a sales commission of $5? per pad. The xed selling and administrative expenses will be $2,926,600 per year. d. Because the company manufactures many products, no more than 232,600 direct laborhours per year can be devoted to production of the new sleeping pads. e. Manufacturing overhead costs are allocated to products on the basis of direct laborhours. Required: 1. Assume that the company uses the absorption approach to costplus pricing. a. Compute the markup percentage that the company needs on the pads to achieve a 22% return on investment [ROI] if it sells all of the pads it can produce. b. What seiling price per sleeping pad will the company establish if it uses a markup percentage on absorption cost? (Round intermediate calculations and nal answer to 2 decimal places} c. Assume that the company is able to sell all of the pads that it can produce. Compute the company's ROI based on the rst year of activity. 2. After marketing the sleeping pads for several years, the company is experiencing a fallo in demand due to an economic recession. A large retail outlet will make a bulk purchase of pads if its label is sewn in and if an acceptable price can be worked out. What is the minimum acceptable price for this special order? {Round your answer to 2 decimal places.) . Markup percentage "3. Selling price to. Return on investment 2. Minimum acceptable prioe