TWO (22 MARKS-) Compulsory Foody Corporation is a manufacturing company based in Dubai and established in 2010. It currently produces and sells there products M15, M25 and MS. Gembe developed a new product: M45. The company plans to sell its new product through its catalogue, which it issues monthly. The company is curently in the peace of mingling new product. The following financial data relate to this product for a budgeted volume of 60,000 units. Foody uses cost-plus pricing to set its best selling price. The me 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 unit $1,800,000 $6 per unit $1,500,000 2. Assume the new product requires an investment of $12,000,000 to be manufactured, and the company wants achieve ROI of 2 the NEW Target Selling Price (10Marks) 3. Explain when the cost-plus is preferred to be used as a pricing method and its limitations (B Mark 0138 QUESTION 2 QUESTION TWO (22 MARKS-) Compulsory Fundy Coporation is a manufacturing company based in Dubai and established in 2010, I currently produces and sells three products: M15, M25 and M35. Given market research developed a new product M45 The company plans no sell its new proher through its catalogue, which it issues monthly. The company is currently in the process of setting a selling price for a od The following financial data relate to this product for a budgeted volume of 60,000 units Foody unes cost-plus pricing to set its target selling price. The mark-up on total unit cost is AP% Det materials Direct labour Variable manufacturing a faturing head Variable selling and administrative expemes Fixed sling and edinstrative expenses $1,920,000 $2,400,000 $10 per unit $1,800,000- 56 per unit $1,500,000 Instructions 1. Comp the Target Selling Price (12Mark 2 Assume the new product is an investment of $12,000,000 to be manufactured, and the company wants to achieve ROI of 20%. Compute the NEW mark-up percentage; and de NEW Target Selling Price (Mar) 3. Explain when the ce plas is preferred to be used as a pricing method and its limitations (3 Bonus Marke)