Big Time Bags provides the following information related to the production of its primary product, backpacks:

Per Unit:

Variable Manufacturing cost: $12.50

Fixed manufacturing cost: $1.50

Variable selling and administrative expenses: $1.80

Desired ROI per unit: $4.60

A. What is the markup percentage, assuming that the Big Time Bags used absorption costing?

B. What is the markup percentage, assuming that the Big Time Bags uses variable costing?