Aldean Company wants to use absorption cost-plus pricing to set the selling price on a new product. The company plans to invest $200,000 in operating assets to produce and sell 20,000 units. Its required return on investment (ROI) in its operating assets is 18% The accounting department has provided cost estimates for the new product as shown below: Total Per Unit $8.10 $6.10 $3.10 Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Variable selling and administrative expenses Fixed selling and administrative expenses $156,000 $2.10 $ 97, 700 Required: 1. What is the unit product cost for the new product? (Round intermediate calculations and final answer to 2 decimal places.) 2 What is the markup percentage on absorption cost for the new product? (Round intermediate calculations to 2 decimal places.) 3. What selling price would the company establish for its new product using a markup percentage on absorption cost? (Round intermediate calculations and final answer to 2 decimal places.) 1 Unit prod cost 2 Markup percentage on absorption cost 3 Selling price per unit % week. Required: 1. What profit did Maria earn during the first week when her price was $6.80? 2. At the start of the second week, Maria increased her selling price by what percentage? What percentage did unit sales decrease? (Round your percentage answers to 2 decimal place.) 3. What profit did Maria earn during the second week when her price was $7.30? 4. What was Maria's increase (decrease) in profits from the first week to the second week? % 1 Profit 2 Percentage increase in selling price Percentage decrease in unit sales 3. Profit % 4 Required: From a value-based pricing standpoint: 1. What is the reference value that McDermott should consider when pricing IC-75? 2. What is the differentiation value offered by IC-75 relative the competitor's offering for each 4,080 hours of usage? 3. What is IC-75's economic value to the customer over its 4,080-hour life? 4. What range of possible prices should McDermott consider when setting a price for IC-75? 1 Reference value 2 Differentiation value 3. Economic value to the customer 4 Range of possible prices