Firefly Corporation produces outdoor portable fireplace units. The following cost information per unit is available: direct materials

Question:

Firefly Corporation produces outdoor portable fireplace units. The following cost information per unit is available: direct materials $21, direct labour $26, variable manufacturing overhead $16, fixed manufacturing overhead $22, variable selling and administrative expenses $9, and fixed selling and administrative expenses $15. The company's ROI per unit is $20.

Instructions

Calculate Firefly Corporation's markup percentage using

(a) Absorption-cost pricing

(b) Variable-cost pricing.

Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...