Question
Ahmed Corporation makes a mechanical stuffed alligator. The following information is available for Ahmed Corporation's expected annual volume of 500,000 units: Per UnitTotal Direct materials$15
Ahmed Corporation makes a mechanical stuffed alligator. The following information is available for Ahmed Corporation's expected annual volume of 500,000 units:
Per UnitTotal
Direct materials$15
Direct labour9
Variable manufacturing overhead12
Fixed manufacturing overhead$400,000
Variable selling and administrative expenses4
Fixed selling and administrative expenses130,000
The company has a desired ROI of 30%. It has invested assets of $23,300,000.
Using absorption-cost pricing,calculate the markup percentage. (Round answer to 2 decimal places, e.g. 15.25%.)
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