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 $600,000 in assets. The cost of producing and selling 10.000 halogen lights are estimated as follows: $32 12 Food costs: Factory overhead Selling and administrative expenses $180.000 80.000 Variable costs per unit: Direct materials Direct labor Factory overhead Selling and administrative expenses Total variable cost per unit Olow Inc. has decided to use the couple approach to product pricing and Night Glow Inc. is currently considering establishing a selling price for the halogenght. The president of has indicated that the halogen light must cam 10% return an d Required: Note: Round all marloup 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 the halogen light. 2. Assuming that the product cost method is used, determine the following: 2. 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 Selling price per unit 4. Appendid) Assuming that the variable cost method is used determine the following Variable cost amount per unit Marcup percentage Seng 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 as could lead management to establish a different short-run price & Assume that as of September 1. 7.000 units of halogen have been produced and sold during the current yet Analysis of the domestic market indicates that 3.000 din 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 1.600 units of the halogen light at 557 each. Tokyo Lighting Inc. will market the units in Japan under its own brand name, and no variable selling and administrative expenses associated with the tale b e incurred by Night Glow Ine. The additional business is not rected to affect the domestic sales of the halogen light and the additional units could be produced using producti ng and m e et . Prepare a differential analysis of the proposed sale to the amount Differential Analysis Reject Order (Alt. 1) or Accept Order (Alt. 2) septerate PO boood on the other antal angles in part to should the proponat