Fast Buck Corporation needs to set a target price for its newly designed product EverReady. The following date relates to this new product. Direct materials Direct labour Variable manufacturing overhead Fixed manufacturing overhead Variable selling and administrative expenses Fixed selling and administrative expenses Per Unit (RM) Total (RM) 20 40 10 1,400,000 5 1,120,000 The cost shown above are based on a budgeted volume of 80,000 units produced and sold each year. Fast Buck uses cost-plus pricing methods to set its target selling price. It is the company practice of using a mark-up of 75% on variable cost. Required: (a) Identify any cost gap occurred to realise the desired mark up. (b) Assumed budgeted volume dropped to 40,000 units. Identify any cost gap occurred to realise the desired mark up