Dessert co makes candy bars for vending machines and sells them to vendors in cases. Although Dessert co makes a variety of candy, the cost differences are insignificant, and the cases all sell for the same price. The target operating income for Dessert co is $1,000,000 and it expects to produce and sell 200,000 cases of candy next year. Expected costs for next year are: Variable production costs $3 per case Variable marketing and distribution costs $1 per case Fixed production costs $100,000 Fixed marketing and distribution costs $200,000 Other fixed costs $50,000 Dessert co determines the selling price of candy at full cost-plus mark-up to generate profits equal to its targeted operating income. Required: 1. How much is the selling price Dessert co needs to charge to earn the target operating income? 2. Calculate the park-up percentage on full cost. 3. Discuss the three major factors that affect pricing decisions