Messina Company wants to use absorption cost-plus pricing to establish the selling price for a new product. The company plans to inves: $650,000 in operating assets that provide the capacity to make 30,000 units. Its required return on investment (ROI) in operating assets is 20% Messina's Accounting Department set a goal of producing and selling 20,000 units during the new profuct's first year of availability. It also provided the following cost estimates for the new product: 1. If the company plans to produce and sell 20,000 units, what is the absorption unit product cost for its new product? Note: Round your answer to 2 decimal places. 2. At a planned sales volume of 20,000 units, what is the markup percentage on absorption cost for the new product? Note: Round your answer to 1 decimal place. 3. Using absorption cost-plus pricing and assuming a planned sales volume of 20,000 units, what selling price would the company establish for its new product? Note: Round intermediate calculations and final answer to 2 decimal places. 4. Using an absorption format, calculate Messina's net operating income if it actually produces and sells only 19,000 units (instead of 20,000 units) at the absorption cost-plus price from requirement 3 . Calculate the ROI at this lower sales volume. Note: Round your intermediate calculations to 2 decimal places. Round final answer to 1 decimal place. 5. Assume Messina's controller recommends raising the new product's selling price in an effort to achieve the desired ROI at the lower sales volume of 19,000 units. a. What would become the new markup percentage? Note: Round your intermediate calculations to 2 decimal ploces. Round final answer to 1 decimal place. b. What would become the new selling price? Note: Round your intermediate percent to 1 decimal place. Round other intermediate calculations and final answer to 2 decimal places. \begin{tabular}{|l|l|l|} \hline 1. Unit product cost & & \\ \hline 2. Markup percentage on absorption cost & & % \\ \hline 3. Selling price per unit & & \\ \hline 4. Return on investment & & % \\ \hline 5a. New markup percentage & & % \\ \hline 5b. New selling price & & \\ \hline \end{tabular}