Paddle Quickly, Inc. manufactures and sells a specialty kayak for whitewater rafting. In 2015, it reported the following: Units produced and sold 20,000 Investment $2,400,000 Full cost per unit $300 Rate of return on investment 20% Markup percentage on variable cost 50% REQUIRED: 1. What was the selling price in 2015? What was the percentage markup on full cost? What was the variable cost per unit? 2. Paddle Quickly is considering raising its selling price to $348. However, at this price, its sales volume is predicted to fall by 10%. If Paddle Quicklys cost structure (variable cost per unit and total fixed costs) remains unchanged and if its demand forecast is accurate, should it raise the selling price to $348? 3. In 2016, due to increased competition, Paddle Quickly must reduce its selling price to $315 in order to sell 20,000 units. The manager of the kayak division reduces annual investment to $2,100,000 but still demands a 20% target rate of return on investment. If fixed costs cannot be changed in this time frame, what is the target variable cost per unit?