need helr number. Wiyh Chapter 25 Differential Analysis, Product Pricing and Activity Based Costing 1209 Appendix PR 25-5A Product pricing using the cost-plus approach concepts; OBJ, 1,2 differential analysis for accepting additional business Crystal Displays Inc. began production of a new product, panel displays, hich the investment The costs of producing and selling 5,000 units of flat displays are estimated as follows: Variable costs per unit: Fixed costs: Direct materials Factory overhead $250,000 Selling and administrative expense Factory overhead Selling and administrative expenses Tota $235 Crystal Displays Inc. is currently considering establishing a selling price panel plays. The of rystal Displays has decided to use the cost-plus approach to product pricing and has indicated that the displays must earn a 15% rate of return invested assets. Instructions me the amount of desired profit from the production and sale of flat panel 2. Assuming that the product cost concept is used, determine (a the cost amount per the markup percentage, and c) the selling price of flat panel displays. (Appendix) Assuming that the total cost concept is used, determine (a) the cost amount per unit, (b) the markup percentage (rounded to two decimal places), and (c) the selling price of flat panel displays (rounded to nearest whole dollar). 4. CAppendi) uming that the variable cost concept is used, determine (a) the cost (b) the markup percentage (rounded to two decimal places), and amount per unit, selling price of flat panel displays Grounded to nearest whole dollar) 5. a r Comment on any additional considerations that could influence establishing the selling price for flat panel displays. 6. Assume that as of August 1, 3,000 units of flat panel displays have been produced and sold during the current year. Analysis of the domestic market indicates that 2,000 additional units are expected to be sold during the remainder of the year at the nor mal product price determined under the product cost concept. On August 3, Crystal Displays Inc. received an offer from Maple Leaf Visual Inc. for 800 units of flat panel displays at $225 each. Maple Leaf Visual Inc. will market the units in Canada under its own brand name, and no variable selling and administrative expenses associated with the sale will be incurred by Crystal Displays Inc. The additional business is not expected to affect the domestic sales of flat panel displays, and the additional units could be produced using existing factory, selling, and administrative capacity. a. Prepare a differential analysis of the proposed sale to Maple Leaf Visual Inc b. Based on the differential analysis in part (a), should the proposal be accepted