New Motion Ltd manufacture electric scooters and review their prices annually. Prices are set using a cost plus method. The estimated costs for the Budget Scooter for the forthcoming year are as follows: Direct material (per unit) Direct labour (per unit) 125 45 5 900,000 (overheads are absorbed per unit) Variable overheads (per unit) Total fixed production overheads for the year Production and sales for the year are estimated to be 18,000 units. The profit on Budget Scooter is expected to be 35% of selling price. Required: a) Calculate the estimated selling price of the Budget Scooter for the forthcoming year rounded to the nearest . [5 marks] b) During the year there were major production issues and this resulted in actual production and sales of only 13,000 units. Prepare a profit statement for the year and comment on the actual profit margin achieved. [7 marks] c) Comment on the potential issues with cost-plus pricing highlighted by your