Wilderness Products, Inc, has designed a self-inflating sleeping pad for use by backpackers and campers. The following information is available about the new product: a. An investment of $1,050,000 will be necessary to carry inventories and accounts receivable and to purchase some new equipment needed in the manufacturing process. The company's required rate of return is 12% on all investments. b. A standard cost card has been prepared for the sleeping pad, as shown below Standard Standard Price or Rate s 2.10 per yard 6.70 per hour $10.90 per hour Standared Quantity or Hourrs Drect materials Direct labor Manufacturing overhead (20 variable Zotal standard cost per pad 6 yards 4 hours 4 hours Cost S12.60 26.80 3.60 $ 83.00 nces c The only variable selling and administrative expense will be a seles commission of $7 per pad. The fixed seiling and administrative d. Because the company manufactures many products, no more than 72,000 direct labor-hou rs per year can be devoted to production of the new sleeping pads. e. Manufacturing overhead costs are allocated to products on the basis of direct labor-hours. Required: 1. Assume that the company uses the absorption approach to cost-plus pricing a. Compute the markup percentage that the company needs on the pads to achieve a 12% return on investment the pads it can produce (ROI)it sells all of price per sieeping pad will the company establish if t uses a markup percentage on absorption cost? (Round if it uses a markup percentage on absorption cost? (Round intermediate calculations and final answer to 2 decimal places.) c. Assume that the company is Compute the company's ROI based on the first year of activity 2. After marketing the sleeping pads for several year A large retail outlet will make able to sell all of the pads that it can produce. Prepare an income statement for the first year of activity. s, the company is experiencing a falloff in demand due to an economic recession. e a bulk purchase of pads if its label is sewn in and if an acceptable price can be worked out. What is the minimum acceptable price for this special order? (Round your answer to 2 decimal places.)