1. Schuman Corporation produces microwave units. The following per-unit cost information is available: direct materials $36; direct labour $24; variable manufacturing overhead $16; fixed manufacturing overhead $40; variable selling and administrative expenses $16; and fixed selling and administrative expenses $28. Its desired ROI per unit is $32.56. Calculate the markup percentage using the absorption-cost approach. Markup percentage?

2.The machining division of ITA International has a capacity of 2,480 units. Its sales and cost data are:

	Selling price per unit		$	80
	Variable manufacturing costs per unit			20
	Variable selling costs per unit			6
	Total fixed manufacturing overhead			209,000

The machining division is currently selling 2,280 units to outside customers, and the assembly division of ITA International wants to purchase 400 units from machining. If the transaction takes place, the variable selling costs per unit on the units transferred to assembly will be $0/unit, and not $6/unit. he units being requested are special high-performance units, and the divisions variable cost would be $18 per unit. What is the minimum transfer price that the machining division should accept? (Round answer to 2 decimal places, e.g. 15.25.)

Minimum transfer price