Ralph Polo Sdn Bhd produces high quality leather handbags and distributes to premium outlets and selected boutiques in Malaysia. The normal production capacity and sales level are 4,000 units per year. The company currently adopts full cost plus 30% mark up as their pricing policy The management accountant has provided the following costs information for two different levels of activity: Production level (units) 1,500 4,000 RM RM Direct material 375,000 1,000,000 Direct labour 270,000 720,000 Production overheads 303,750 560,000 Selling and administration 255.000 480,000 Depreciation of machinery 30.000 30,000 Finance cost 12.000 12.000 However, due to the pandemic uncertainty in the country, company is expecting the following cost changes in the following year: Direct material cost will increase by 5% while direct labour costs will decrease by 10% respectively. Variable production overhead will increase by 7%. However, the replacement of one of the old leather processing machine will cause the foxed production overheads cost to decrease by 3% and depreciation of machinery will increase to RM50,000. . Due to the Movement Control Order (MCO) situation, company plans to be more aggressive in promoting their products across online shopping platforms such as Fashion Valet, Shopee and Lazada which will increase selling expenses by RM30,000. As a result of this promotion, sales volume is expected to increase by 30% Management accountant suggests that the company should use full production cost plus 40% margin as their new pricing strategy. Required: a) Calculate the current selling price per unit of leather handbag based on the company's current pricing policy (7 marks) b) Calculate the expected selling price per unit of leather handbag for next year based on the suggestion by management accountant. (5 marks) c) Management is considering to maintain their current pricing policy in the following year. Advise the best pricing policy to the company if they plan to maximize market share in the following year. (6 marks)