Crystal Displays Inc. recently began production of a new product, flat panel displays, which required the investment of $1,500,000 in sets. The costs of producing and selling 5,000 units of flat panel displays are estimated as follows: Variable costs per unit: Fixed costs Direct materials $123 Factory overhead $250,000 Direct labor 30 Selling and administrative expenses 150,000 Factory overhead 50 Selling and administrative expenses Total variable cost per unit 5235 Crystal Displays Inc. is currently considering establishinge selling price for flat panel displays. The president of Crystal Displays has decided to use the cost-plus approach to product pricing and has indicated that the displays must eam 15 return on invested assets Required: Note: Round all markup percentages to two decimal places, if required. Round all costs per unit and selling prices per unit to the nearest whole dollar. 1. Determine the amount of desired profit from the production and sale of net panel displays 2. Assuming that the product cost method is used determine the following: Product cost amount per unit S b. Markup percentage Selling price per unit 3. (Appendix) Assuming that the states used determine the following: Total cost amount per un $ Markup percentage Selling Price per unit 4. Apen) Assuming that the varios mot 15 use, determine the following a. Variable contamount per un 5 Markup Ert tap Seing Price per unit 5. The cost-plus approach price computed above should be viene general guideline for establishing long-run normal prices, however, other consideration, such as could lead management to establish different short-nun price 6. Assume that as of August 1, 3,000 units of nature displays have been produced and sold during the current year. Analysis of the domestic market indicates that 2.000 additional are expected to be sold during the reader of the naroduct determined dat cest method. On August 3, Crystal Display Inc. recerved an offer from Maple Leaf Visualine for 100 units of flat panel displays at $225 each Maple Leaf Visual Inc will market the sits in Canada under brand and wing and administratadith the wil incurred by Crystal Daplays Inc. The additional business at expected to wlect the domestic sales of a panel displays, and the additional units could be produceduring existing factory, sailing and strategi a. Prepare aferential analysis of the proposed sale to Maple Leaf Visual Inc. If an amount is rero, antar o Differential Analysis Reject (Alt. 1) or Accept (Alt. 2) Order August 3 Reject Accept Differential Order Order Electa (Alternative 1) (Alternative 2) (Alternative 2) Revenues Costs Variable manufacturing costs Profilass b. Based on the differential analysis in a should the proposal be accepted