A computer manufacturer produces three types of devices: mobile phones, tablets, and computers. For the production of these three devices you have the following information: Phone Tablet Computer...

A computer manufacturer produces three types of devices: mobile phones, tablets, and computers. For the production of these three devices you have the following information:  PhoneTabletComputerMaterial cost per unit £90£140£315Direct labor hours per unit 22.54Budgeted units1,500,000900,0001,200,000 Labor cost per hour£8Overhead costs per annumUtilities£20,000,000Rent£15,000,000Audit and legal£5,000,000Administrative staff£40,000,000Total£80,000,000ABC analysis suggested that overhead costs are distributed to the three products according to the table below: OverheadsPhoneTablet ComputerUtilities £8,000,000  £5,000,000  £7,000,000 Rent £8,250,000  £2,250,000  £4,500,000 Audit and legal £2,900,000  £1,250,000  £850,000 Administrative staff £23,200,000  £6,000,000  £10,800,000 For each of the three products, the company aims at a different percentage for profit. Under the full absorption costing method and the targeted profit percentage, the prices of the three products should be: PhoneTabletComputerFull costing price £170.69 £233.87 £435.67 Calculate the aimed profit percentages for the three products and under the full absorption costing method, with overhead costs absorbed on the basis of direct labour hours. Use the profit percentages that you derived in (1) and calculate the prices of the three products under the ABC system. Recommend a cost system and include any changes that you would suggest to the pricing strategy of the computer company (target length 300 words).