TWO (22 MARKS-) Compulsory Foody Corporation is a manufacturing company based in Dubai and established in 2010 h currently produces and sells the product M15, M25 and M15. Gdy developed a new product: M45. The company plans to sell its new product through its catalogue, which it is monthly. The company is cumnly the prof new product. The following financial data relate to this product for a budgeted volume of 60.000 units. Foody uses cost plus pricing to s 40% Direct materials Direct labour Variable manufacturing overhead Fixed manufacturing overhead Variable selling and administrative expenses Fixed selling and administrative expenses Instructions 1. Compute the Target Selling Price (12Marks) $1,920,000 $2,400,000 $10 per usi $1,800,000 56 per unit $1,500,000 surgit selling pri The ma 2. Assume the new product requires an investment of $12,000,000 to be manufactured, and the company wants to achieve Rot of 2% Compus the NEW mark sp page and the NEW Target Selling Price (10Marka) 3. Explain when the cost-plus is preferred to be used as a pricing method and its limitations (3 Boma Mark TTTT