Question 4: (9 marks) (B1, C1) Part A: (5 marks) The IBM Company is in the process of developing a new product called (MMA). The product current design carries with it following costs: Total Costs Total variable production costs 1 500.000 Fixed manufacturing overhead 500,000 Selling Expenses 100,000 General, and administrative expenses 400.000 Desired Profit 300,000 Cost of assets employed 100,000 - Units to be Produced 1000,000. - On average, the company now earns a 6% return on assets (ROA). Instructions: 1. Using gross margin pricing, compute the price per unit? (3 marks) 2. Using return on assets pricing, compute the price per unit? (2 marks) Part B: (4 marks) Determine the April 2014 residual income for an investment center with the following information: Operating income for the month ended April 30, 2014 $14,900,000 Assets at March 31, 2014 10,200,000 Assets at April 30, 2014 13.150,000 Desired ROI 49% Actual ROI 60%