Determination of cost and price, and profitability analysis Introduction In this activity you must complete a practice exercise on price decisions and profitability analysis. Specific instructions: 1. Carefully analyze the following hypothetical situation and answer the requirements: The XYZ Company wishes to invest $ 2,000,000 for the design, development and production of a new blender model. Accountants determine that the price cannot exceed $ 30/unit, which is the competitive price in the market. The company wishes to generate a 15% minimum profit on the sale of this product and estimates that it will sell 40,000 units in the year. 2. Determine the target cost per unit (target cost) using the data presented. 3. Does the cost determined favorably compare with a cost determined based on 130% of the variable cost per unit, which is currently $ 18? 4. Is the cost based on 130% of the variable cost per unit efficient? Justify your posture. 5. You must present the answer to the exercise in full