Party City Manufacturing makes a product called the Professional Shade Event Tent (Pro-Shade). Party City sells 50,000 units each month for $230.00 each. Monthly manufacturing costs incurred are summarized in Exhibit one. Senior management of Party City Manufacturing is concerned about the increasing number of competitive products that are emerging in the market where the Pro-Shade competes. The market is quite competitive with little product differentiation. One of Party Citys competitors has recently announced a price reduction of 5%, so management is considering its options. It knows it must match its competitors selling price per unit if it is to maintain its market share, so Party City will have to lower its selling price by 5%. Demand for the product is expected to remain strong for the next few years but competition will be fierce. Selling price and timely delivery will be the key factors in maintaining the companys market share. Managements objective is to maintain the operating income at its current level. It has asked the product manager for the Pro-Shade to consider all aspects of design and production with a goal of maintaining the current operating income with the anticipated price reduction. The information gathered by the product manager is summarized in Exhibit two. Required: 1. Calculate Party Citys monthly product profitability (product operating income) for the ProShade for the current fiscal year (before any changes are introduced). (4 marks) 2. What is the per unit full manufacturing target cost for the Pro-Shade that Party City must achieve in order to maintain the same operating income as calculated in required 1? (2 marks) 3. Calculate Party Citys monthly product projected profitability (product operating income) for the re-designed Pro-Shade. Based on your calculation, did Party City meet its objective? Explain (6 marks) 4. Which cost items would you recommend for further re-design? Explain for full marks.