Question 1 13'26 Cost-plus. target pricing, working backward. The new CEO of Rusty Manufacturing has asked tor information about the operations of the rm from last year. The CEO is given the following information, but with some data missing: Total sales revenue 1 Number of units produced and sold 500,000 units Selling price '? Operating income I $180,000 -. Total investment in assets - $2,250,000 " Variable cost per unit $4.00 Fixed costs fertile year $2,500,000 1. Find {altotal sales revenue,lb} selling price,ch rate of return on investment, and id] markup percent- age on full costfor this product ' ' 2. The new CEO has a planto reduce fixed costs by $225,000 and variable costs by $0.30 per unit while continuing to produce and sell 500,000 units. Using the same markup perpentege as in requirement 1, calculate the new selling price. . 3. Assume \"die CED institutesthe changes in requirementz including the new selling price. However, the reduction in variable cost has resulted in lower product quality resulting in 5% fewer units being sold compared with before the change. Eaiculete operating income {loss}