4.

Cullumber Corporation makes a mechanical stuffed alligator. The following information is available for Cullumber Corporations expected annual volume of 500,000 units:

		Per Unit		Total
Direct materials		$16
Direct labour		7
Variable manufacturing overhead		11
Fixed manufacturing overhead				$400,000
Variable selling and administrative expenses		6
Fixed selling and administrative expenses				180,000

The company has a desired ROI of 30%. It has invested assets of $24,300,000.

(a)

Using absorption-cost pricing, calculate the markup percentage. (Round answer to 2 decimal places, e.g. 15.25%.)

Markup percentage

enter the markup percentage %

b. Using variable cost pricing, calculate the markup percentage