The Apple Company has the following costs:

Total Investment	$2,000,000
Required Return on Investment	15%
Manufacturing Costs
Variable costs	$12.00	per unit
Fixed costs	$2,500,000
Selling & Administrative Costs
Variable costs	$8.00	per unit
Fixed costs	$1,000,000
Capacity Used	1,000,000	units

 Required

1) Calculate the TARGET PRICE using the contribution margin approach.
2)Calculate the total revenues at the target price.
3) Calculate the MARK-UP PERCENTAGE ON FULL COSTS.
4) If the price is reduced by 2% and the volume increased by 15%. Should the company change their price.[YES, NO]
5) If the price is reduced by 2% and the volume increased by 15%. What would be the operating income?