Use the excel document found in the Assignments tab to answer the questions below.

Part A: (1 mark)

Advent Company wants to introduce a new printer called the Blitzer. The company believes demand will be 10,000 units per year at a price of $50 per printer. Advent would invest $300,000 and requires a 50% return on their investment.

Calculate the target cost per unit for the new Blitzer printer.

Part B: (1 mark)

Growing Inc. manufactures growth charts. Growing Inc. has recently invested in a new machine that can individualize the picture displayed on the growth chart. They believe demand for this new type of growth chart will be 50,000 charts per year at $15 per chart. The machine will cost $500,000. They would like to earn 45% on this investment.

Calculate the total target cost for 50,000 units for the new style of growth chart.

Part C: (3 marks)

Talia Corp. produces digital cameras. For each camera produced, direct materials are $27, direct labour is $15, variable manufacturing overhead is $18, fixed manufacturing overhead is $32, variable selling and administrative expenses are $7, and fixed selling and administrative expenses are $22.

Calculate the target selling price assuming that a 40% markup on total per unit cost is required.