Moving another question will save this response Question 4 4 points For many years, Manama Corporation has used a straightforward absorption costing approach to cost-plus pricing with a markup percentage of 25% s recently lost considerable business to foreign compestors that have become very aggressive in the marketplace. These firms appear to be using target costing An example of Manama Corporation's product no 700, which has the following unit-cost characteristics direct materials, 565; direct tabor, D manufacturing overhead, 350, and selling and administrative expenses. 340. The going market price for an identical product of identical quality is 1200, which is below what Manama Corporation is charging. Required: a) What is Manama Corporation's setting price for product no. 700 under its current absorption costing approach to cost-plus pricing? (2 marks) b) If Manama Corporation used target costing for item no. 700, what should have been its target cost per unit if the company desired to meet market price of $260 and maintain its current rate of profit on sales (2 marks) For the toolbar, press ALT F10/PAT.C