ABC provided the following information:

$65.00Per Unit Direct Materials$48.00Per Unit Direct Labour$16.00Per Unit Variable Manufacturing Overhead$12.00Per Unit Variable Selling Expenses$250,000Fixed Manufacturing Overhead$55,000Fixed Selling and Admin16%ABC's Desired ROI$8,250,000Invested Assets4,000Units per year is the expected Production and Sales.

Instructions

Calculate each of the following:

A. Cost per unit of fixed manufacturing overhead, fixed selling, and administrative expenses.

B. Desired ROI per unit.

C. Markup percentage using the absorption-cost approach. Show your calculations. Create an Income Statement with ROI to confirm you are correct.

D. Markup percentage using the variable-cost approach. Show your calculations. Create an Income Statement with ROI to confirm you are correct.