Problem 12-2 20 points Spring Training Inc is considering expanding their business. They plan to hire a salesperson to cover trade shows. Because of compensation, travel expenses, and booth rental, fixed costs for trade show are expected to be $800,000. The booth will be open 120 hours during trade shows Spring Training Inc also plans to add a new product line, HRs, which will have a variable cost of $720 per package Spring Training Inc will continue to sell the existing product, Singles, which will have a variable cost of Spring Training Inc believes that the salesperson will spend approximately : Assume that the fixed costs will be allocated based on selling hours for each product. Hint : Calculate fixed cost rate per hour so you can spread fixed costs to each product Required 1. Determine the estimated total cost (including fixed and variable costs) and cost per unit of each product, assuming that the salesperson is able to sell 320 units of Singles salesperson is able to sell 200 units of HRs 2. Determine the estimated total cost (including fixed and variable costs) and cost per unit of each product, assuming that the salesperson is able to sell 800 units of Singles salesperson is able to sell 400 units of HRs 3. Explain why the cost per unit figures calculated in Requirement 1 are different from the amounts calculated in Requirement 2. Also explain how the differences in estimated cost per unit will affect pricing decisions. Problem 12-2 20 points Spring Training Inc is considering expanding their business. They plan to hire a salesperson to cover trade shows. Because of compensation, travel expenses, and booth rental, fixed costs for trade show are expected to be $800,000. The booth will be open 120 hours during trade shows Spring Training Inc also plans to add a new product line, HRs, which will have a variable cost of $720 per package Spring Training Inc will continue to sell the existing product, Singles, which will have a variable cost of Spring Training Inc believes that the salesperson will spend approximately : Assume that the fixed costs will be allocated based on selling hours for each product. Hint : Calculate fixed cost rate per hour so you can spread fixed costs to each product Required 1. Determine the estimated total cost (including fixed and variable costs) and cost per unit of each product, assuming that the salesperson is able to sell 320 units of Singles salesperson is able to sell 200 units of HRs 2. Determine the estimated total cost (including fixed and variable costs) and cost per unit of each product, assuming that the salesperson is able to sell 800 units of Singles salesperson is able to sell 400 units of HRs 3. Explain why the cost per unit figures calculated in Requirement 1 are different from the amounts calculated in Requirement 2. Also explain how the differences in estimated cost per unit will affect pricing decisions