e emaining Time: 24 minutes, 32 seconds. uestion Completion Status: QUESTION 1 Alba Company is considering the introduction of a new product. To determine the selling price of this product, you have gathered the following information 5 points Save The direct material per unit $2,300 The direct labor per unit $2.162 The variable manufacturing cost per unit $1.100 The total fixed manufacturing costs $1,438.000 The variable selling and administration cost per unit $1,150 The total fixed selling and administration costs $400.000 If the company requires rate of return 16% on its investments and $6,500,000 investments are needed. The total direct materials available to be used in the production is $2,300,000 Required: If the company uses absorption costing approach to cost-plus pricing, compute: a. The unit product cost. b. The markup percentage c. The selling price per unit. 2. Assume that the company is considering the introduction of other new product. If the target-selling price per unit is $7,700 and the company investing $7,000,000 to purchase equipment needed to produce 500 units. If the company requires rate of return on its investments 16%, compute the target cost per unit. 3. Assume Alba produces 2 products. The first product is the unique one and Alba is the only company that produces this product, whereas several companies produce the second product and there is a strong competition in the market regarding this product. Which pricing approach is better applicable for pricing of each product, and why? For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac). v Eve 1 U Arial B S Paragraph 10pt % to 6 Q 5 X2 X2 STT TIC POS I. WERED BY TINY Chick Save and Submit to save and submit. Click Save All Answers to save all