Shoes R Us is setting a target selling price for its new running shoe. The following data relate to it Total Per unit S 15 S 20 $ 10 $ 3,500,000 S 8 5 Direct Materials Direct Labour 7 Variable manufacturing overhead 8 Fixed manufacturing overhead 9 Variable selling and administrative expenses 10 Fixed selling and administrative expenses 11 12 Budgeted Volume of Units 13 Mark up on Total Unit Cost 14 $ 2,000,000 250,000 10% TA 10 Required (round all answers to two decimal points) 16 13 Calculate the total variable cost per unit, total fixed cost per unit, and total cost per unit (3 marts) Total Variable Cost per Unit 20 Total Fixed Cost per Unit 21 Total Cost per Unit 22 23 b. Calculate the desired markup per unit in dollars. (2 marks) 24 25 Markup per unit (5) 26 27 c. Calculate the target selling price. (1 mark) 28 29 Target selling price 30 10 D d. Shoes R Us ha considered the cost per unit and the desired profit per unit when establishing the selling price. What other factor do they need to consider when 31 setting a selling price for their new shoe? (1 mark) 34 e. if the number of units decreases to 225.000 units, will the selling price increase 35 or decrease? Explain why this would occur (2 marks) 36