Price Determination Soft Industries has just patented a new lotion with lasting sun protection. The company's controller has developed the following annual information for use in price determination meetings: Variable production costs $ 450,000 Fixed overhead 250,000 Selling expenses 100,000 General and administrative expenses 75,000 Desired profit 315,000 Cost of assets employed 1,000,000 Annual demand for the product is expected to be 500,000 tubes. On average, the company now earns an 8 percent return on assets. 1. Compute the projected unit cost for one tube of lotion. Round your answer to the nearest cent. $ 1.75 per unit. 2. Using gross margin pricing, compute the markup percentage and selling price for one tube. Round your selling price answer to the nearest cent. Markup Percentage 70 % Gross MarginBased Price $ 2.38 per unit 3. Using return on assets pricing, compute the unit price for one tube. Round your answer to the nearest cent. $ per unit.