PROBLEM 8-12. Activity-Based Pricing [LO 6] Consider the information in Problem 8-11.Lauden Conference Solutions has decided to adopt an activity-based pricing scheme.On future jobs,the company will charge a 35 percent markup on the sum of product costs plus installer salaries. In addition, the company will charge $300 per change order,$90 per product return for products that are in excellent condition, and $85 per meeting hour with a Lauden conference room designer. Required a. What would the profit be on the order from Orvieto in Problem 8-11? b. Identify pros and cons of adopting the activity-based pricing scheme.