Ahmed Corporation makes a mechanical stuffed alligator. The following information is available for Ahmed Corporations...
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Accounting
Ahmed Corporation makes a mechanical stuffed alligator. The following information is available for Ahmed Corporations expected annual volume of 500,000 units:
| Per Unit | Total | ||||
| Direct materials | $15 | ||||
| Direct labour | 6 | ||||
| Variable manufacturing overhead | 13 | ||||
| Fixed manufacturing overhead | $400,000 | ||||
| Variable selling and administrative expenses | 6 | ||||
| Fixed selling and administrative expenses | 150,000 |
The company has a desired ROI of 40%. It has invested assets of $24,900,000.
Using absorption-cost pricing, calculate the markup percentage. (Round answer to 2 decimal places, e.g. 15.25%.)
| Markup percentage | % |
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Using variable-cost pricing, calculate the markup percentage. (Round answer to 2 decimal places, e.g. 15.25%.)
| Markup percentage | % |
eTextbook and Media
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