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 prot be on the order from Orvieto in Problem 8-11?

b. Identify pros and cons of adopting the activity-based pricing scheme.