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

		Per Unit		Total
Direct materials		$15
Direct labour		6
Variable manufacturing overhead		13
Fixed manufacturing overhead				$400,000
Variable selling and administrative expenses		6
Fixed selling and administrative expenses				150,000

The company has a desired ROI of 40%. It has invested assets of $24,900,000.

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

Markup percentage

%

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

Markup percentage

%

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