Product Pricing using the Cost-Plus Approach Methods; Differential Analysis for Accepting Additional Business Night Glow Inc. recently began production of a new product, the halogen light, which required the investment of $2,160,000 in assets. The costs of producing and selling 10,800 halogen lights are estimated as follows: Variable costs per unit Direct materials Direct labor Factory overhead Selling and administrative expenses 42 Total variable cost per unit Night Glow Inc. is currently considering establishing a selling price Flxed costs 108 Factory overhead $432,000 23 Selling and administrative expenses 216,000 49 for the halogen light. The president of Night Glow -plus approach to product pricing and has indicated that the halogen light must earna 20% return on invested assets. Required: Note: Round all markup percentages to two decimal places, if required. Round all costs per unit and selling prices per unit to the nearest whole dollar. 1. Determine the amount of desired profit from the production and sale of halogen lights. 2. Assuming that the product cost method is used, determine the following: a. Product Cost amount per unit b. Markup Percentage C. Selling price per unit 3. (Appendix) Assuming that the total cost method is used, determine the following: a. Total Cost amount per unit b. Markup Percentage c. Selling price per unit 4. (Appendix) Assuming that the variable cost method is used, determine the following: a. Variable cost amount per unit b. Markup Percentage c. Selling price per unit 5. The cost-plus approach price computed above should be viewed as a general guideline for establishing long-run normal prices; however, other considerations, such ascould lead management to short-run price. 6. Assume that as of September 1, 6,000 units of halogen light have been produced and sold during the current year. Analysis of the domestic market indicates that 4,800 additional units of the halogen light are expected to be sold during the remainder of the year at the normal product price determined under the product cost method.On September 5, Night Glow Inc. received an offer from Tokyo Lighting Inc. for 1,800 units of the halogen light at