24.

The management of Matsuura Corporation would like to set the selling price on a new product using the absorption costing approach to cost-plus pricing. The company's accounting department has supplied the following estimates for the new product:

	Per Unit	Per Year
Direct materials	$48.20
Direct labor	$15.20
Variable manufacturing overhead	$7.20
Fixed annual manufacturing overhead		$53,240
Variable selling and administrative expenses	$3.20
Fixed annual selling and administrative expenses		$13,640

Management plans to produce and sell 2,200 units of the new product annually. The new product would require a return on investment of $26,600 (the required ROI x the required investment).

To the nearest whole percent, the markup percentage on absorption cost is: (Round your answer to 2 decimal places.)

11.33%

3.33%

22.67%

8.00%

25. Eckhart Company uses the absorption costing approach to cost-plus pricing as described in the text to set prices for its products. Based on budgeted sales of 67,000 units next year, the unit product cost of a particular product is $13.30. The company's selling and administrative expenses for this product are budgeted to be $758,754 in total for the year. The company has invested $390,000 in this product and expects a return on investment of 12%. The selling price based on the absorption costing approach for this product would be closest to:

$24.62

$39.9

$14.58

$25.32