What are the benefits of target costing over cost-plus-profit? Plesco Incorporation's research and development succeed to lunch a new product. Cost information regarding new product are as follows: Particulars R&D Development Introduction Growth $200m Maturity Decline Marketing Cost ($m) 50 40 20 4 Production cost per unit $4 Production Volume 2m $3.5 5m $3 $3.2 10m 4m The CEO says that a price of $54 should be charged to cover costs and has produced the following schedule to support it: Particulars Amount ($m) Amortise R & D (200/4) 50 Marketing Costs 50 Production Costs (4*2) 8 108 2m $54 per unit Total Costs Total Production Cost Per Unit (108/2) Calculate cost per unit using life cycle costing (Ignore Time Value of Money) and comment on the proposed price of CEO