QUESTION 3 [Total: 5] The full cost of a new product is R80 per unit. The company aims to make a profit margin of 20% on the selling price of all its products. The market for the new product is highly competitive and similar products are sold for R95 per unit. The company is unsure whether to use target pricing or cost-based pricing. Briefly explain which method is more appropriate, as well as how it will affect the profit that will be realised on the new product