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
%
eTextbook and Media
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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