Bayan Company wants to use absorption cost-plus pricing to set the selling price on a newly remodeled product. The company plans to invest $700,000 to produce and sell 60,000 units. Its required return on investment (ROI) is 10%. The accounting department has provided cost estimates for the new product as follows: Required: (Round your answers to two decimal points) 1. Determine the markup percentage on absorption cost for the new product. (2.5 Marks) 2. Determine the selling price for the new product using the absorption costing approach to cost-plus pricing. (1 Mark) 3. Suppose the company actually sold only 50,000 units (instead of its planned sales volume of 60,000 units) at the selling price that you calculated in Requirement 2 , compute the net income or net loss. (1.5 Marks) For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac). Bayan Company wants to use absorption cost-plus pricing to set the selling price on a newly remodeled product. The company plans to invest $700,000 to produce and sell 60,000 units. Its required return on investment (ROI) is 10%. The accounting department has provided cost estimates for the new product as follows: Required: (Round your answers to two decimal points) 1. Determine the markup percentage on absorption cost for the new product. (2.5 Marks) 2. Determine the selling price for the new product using the absorption costing approach to cost-plus pricing. (1 Mark) 3. Suppose the company actually sold only 50,000 units (instead of its planned sales volume of 60,000 units) at the selling price that you calculated in Requirement 2 , compute the net income or net loss. (1.5 Marks) For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac)