S ChocAttack makes candy bars for vending machines and sells them to vendors in cases of 30 bars. Although ChocAttack makes a variety of candies, the cost differences are insignificant, and the cases all sell for the same price: ChocAttack has a total capital investment of $19,000,000. It expects to produce and sell 1700,000 cases of candy next year. ChocAttack requires a 12% target return on investment. Expected costs for next year are: 2 (Click the icon to view the costs.) ChocAttack prices the cases of candy at full cost plus markup to generate profits equal to the target return on capital. Read the requirements. Data table Variable production costs $4.00 per case Variable marketing and distribution costs $1.00 per case Fixed production costs $2,570,000 Fixed marketing and distribution costs $500,000 Other fixed costs $250,000 Print Done Requirements 1. What is the target operating income? 2. What is the selling price ChocAttack needs to charge to earn the target operating income? Calculate the markup percentage on full cost. 3. ChocAttack is considering increasing its selling price to $14 per case. Assuming production and sales decrease by 4%, calculate ChocAttack's return on investment. Is increasing the selling price a good idea? Print Done Requirement 1. What is the target operating income? The target operating income is 2280000 Requirement 2. What is the selling price ChocAttack needs to charge to earn the target operating income? Calculate the markup percentage on full cost. To earn the target operating income, on a per unit basis, ChocAttack must charge 13 Now calculate the markup percentage on full cost. (Round intermediary calculations to the nearest cent. Round the markup on full costs as a percentage rounded to two decimals, X.XX%.) The markup percentage on full cost is %. Requirement 3. ChocAttack is considering increasing its selling price to $14 per case. Assuming production and sales decrease by 4%, calculate ChocAttack's return on investment. Is increasing the selling price a good idea? (Enter your answer as a percentage to rounded two decimal places, XXX%.) ChocAttack's return on investment is 14.36 %. Is increasing the selling price a good idea? Increasing the selling price is a good idea because invested capital increases without increasing operating income, investment. The new return on investment does not exceed the 12% target return on investment. which results in a lower return on Read the requirements. return on investment. Is increasing the selling price a goo ChocAttack's return on investment is 14.36 %. Is increasing the selling price a good idea? Increasing the selling price invested capital decreases without decreasing operating income, invested capital increases without increasing operating income, operating income decreases without increasing invested capital, operating income increases without increasing invested capital, a good idea because invested capital increases without increasing operating income, investment. The new return on investment does not exceed the 12% target return on investment