# 3: (10 marks) Pharoah Corporation produces industrial robots for high-precision manufacturing. The following information is given for Pharoah Corporation: Direct materials Per Unit Total $390 Direct labour 290 Variable manufacturing overhead Fixed manufacturing overhead Variable selling and administrative expenses 80 50 $1,984,000 Fixed selling and administrative expenses 341,000 The company has a desired ROI of 30%. It has invested assets of $51,150,000. It expects to produce 3,100 units each year. a. Calculate the markup percentage and target selling price using absorption-cost pricing. (Round markup percentage to 3 decimal places, e.g. 15.250% and target selling price to 0 decimal places, e.g. 5,250.) b. Calculate the markup percentage and target selling price using variable-cost pricing. (Round markup percentage to 3 decimal places, e.g. 15.250% and target selling price to 0 decimal places, e.g. 5,250.)