A company has variable manufacturing costs per unit of $20, and has fixed manufacturing cost per unit of $15. Variable selling and administrative costs per unit are $4, while fixed selling and administrative costs per unit $6. The company desires an ROI of $7.50 per unit. If the company uses the absorption-cost approach, what is its markup percentage?

a

50%

b)

16.67%

c)

21.5%

d)

25%

e)

8.33%