PRICING Farely Company incurs the following costs in producing and selling 5,000 units of product Y each year: Production Costs: Variablematerial, labor, and overhead) Fixed (based on 5,000 units produced) Php 7 3 Selling and Administrative Costs: Variable Fixed (based on 5,000 units produced) 1 2 1-2 (2 points) Assume the company uses the absorption approach to cost-plus pricing and desires a markup of 40%. The target selling price would be (Show your solution) A. Php 16 B. Php 14 C. Php 16.80 D. Php 18.20 3 - 4 (2 points) Assume that the company uses the contribution approach to cost-plus pricing and desires a mark up of 75%. The target selling price would be (Show your solution) A. 17.50 B. 12.25 C. 15.75 D. 14.00