Nolan Limited is considering introducing a new product Management has gathered the following information: Number of units to be produced and sold each year Unit product cost Projected annual selling and administrative expenses Estimated investment required by the company Desired return on investment (ROI) 10,000 $ $ 40,000 $400,000 8% Required: 1. Using the absorption costing approach to cost-plus pricing, compute the markup the company will have to use to achieve the desired ROI. Absorption costing 2. Assume that the $16 unit product cost includes $3 per unit for fixed manufacturing overhead based on producing and selling 10,000 units each year. Also assume that $26,000 of the total selling and administrative expenses of $40,000 is fixed. The remainder is variable. Use the total variable costing approach to calculate the markup the company will have to use to achieve the desired ROI. (Round your answer to 2 decimal places. i.e., 0.1234 needs to be entered as 12.34) Mark-up total variable costs 3. Compute the target selling price per unit under each pricing approach from (1) and (2) above. (Round your answers to 2 decimal places.) Target selling price per unit