Sater to stay in Protected View. Question 2 (15 marks) Enable Editing Molly Maid has invested $350,000 into starting the business of janitorial services. The company has set a target Return on Investment of 10%. One service takes 2 hours of labour at a cost of $25 per labour hour. Supplies are estimated to be $70 per service. The company estimates a total of 3,650 services for the year. Fixed costs are $40,000 annually. Required a. Calculate the price that should be charged for each service to achieve the return on investment (ensure to calculate target contribution margin and target operating income). Keep your answer to two decimal places. b. Calculate the markup in dollars and percentage. Due to economic downturn, The Company is looking at 2 different pricing strategies to maintain their ROI of 10%. Evaluate each option and recommend the best option: a. Option 1 - Increase the price charged to customers by 5% and decrease labour cost by 3% per hour. Each service will still take 2 hours of labour per service and supplies will still cost $70 per service. The company will provide only 2,500 services per year. b. Option 2 - Change suppliers, where supplies will cost $65 per service. There will be no change to the price charged to the customer (use the selling price calculated from part a). Labour costs will decrease by 2% per hour and the company will provide 3,100 services per year. C