Question 2 JT Manufacturing estimates that they can produce and sell 50,000 units in the upcoming year. The following is the capital investment, target return on investment and estimated annual operating costs: Capital Investment Target Return on Investment Variable operating costs per unit Fixed Costs Salaries and wages Building maintenance General administration Total fixed costs $2,500,000 15% $13.00 $225,000 $30,000 $20,000 $275,000 Required 1. Calculate the selling price the company should charge to meet their return on investment. 2. Calculate the markup as a percentage of the full cost. 3. If market research indicates a 5% decrease in the selling price per unit will result in a 5% increase in the number of units sold, should the company reduce the selling price per unit?