(Marks: 15) Question 1 FNG Paint (Pty) Ltd produces finger paint and sells them to pre-schools. The following information relates to a set of finger paint. A set of finger paint is considered to be one unit 4 hours Direct labour needed for the first set of paint Direct labour costs per unit Direct material costs per unit Total Fixed costs Learning curve R30 per hour R25 R2 000 80% Required: Using the learning curve theory and information provided above, calculate the expected average cost for one set of paint should four and sixteen sets be produced, respectively. Round off to two decimal places. Question 2 (Marks: 10) Northern Ltd makes and sells a range of seasonal clothing accessories for the Teenage market. It is not dominant in the market in which it operates and, as a result, it has to accept the market price for each of its accessories. The company is keen to ensure that it continues to compete and earn satisfactory profit at each stage of operation Required: Explain Target Costing and how Northern Ltd could use Target Costing to improve its future performance