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

Question:

Rensing produces outdoor portable fireplace units. The following per unit cost information is available: direct materials $20; direct labor $25; variable manufacturing overhead $14; fixed manufacturing overhead $21; variable selling and administrative expenses $9; and fixed selling and administrative expenses $11. The company’s ROI per unit is $20.

Instructions
Compute Rensing Corporation’s markup percentage using
(a) absorption-cost pricing and
(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...