Maria Lorenzi owns an ice cream stand that she operates during the summer months in West Yellowstone, Montana. She is unsure how to price her ice cream cones and has experimented with two prices in successive weeks during the busy August season. The number of people who entered the store was roughly the same each week. During the first week, she priced the cones at $5.40 and 2,350 cones were sold. During the second week, she priced the cones at $5.90 and 1,900 cones were sold. The variable cost of a cone is $1.30 and consists solely of the costs of the ice cream and the cone itself. The fixed expenses of the ice cream stand are $2,045 per week Required: 1. What profit did Maria earn during the first week when her price was $5.40? 2. At the start of the second week, Maria increased her selling price by what percentage? What percentage did unit sales decrease? (Round your percentage answers to 2 decimal place.) 3. What profit did Maria earn during the second week when her price was $5.90? 4. What was Maria's increase (decrease) in profits from the first week to the second week? % 1. Profit 2. Percentage increase in selling price Percentage decrease in unit sales 3. Profit 4. % Shimada Products Corporation of Japan plans to introduce a new electronic component to the market at a target selling price of $15 per unit. The company is investing $4,500,000 to purchase the equipment it needs to produce and sell 540,000 units per year. Its required rate of return on all investments is 12%. Required: Compute the component's target cost per unit. (Round your answer to 2 decimal places.) Target cost per unit