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

		Per Unit		Total
Direct materials		$12
Direct labour		9
Variable manufacturing overhead		12
Fixed manufacturing overhead				$400,000
Variable selling and administrative expenses		7
Fixed selling and administrative expenses				180,000

The company has a desired ROI of 30%. It has invested assets of $23,700,000.

(a)

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

Markup percentage

enter the markup percentage %

Question 2.

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

		Per Unit		Total
	Direct materials	$13
	Direct labour	7
	Variable manufacturing overhead	14
	Fixed manufacturing overhead			$325,000
	Variable selling and administrative expenses	5
	Fixed selling and administrative expenses			175,000

The company has a desired ROI of 25%. It has invested assets of $24,400,000.

(a)

Calculate the total cost per unit. (Round answer to 2 decimal places, e.g. 15.25.)

Total cost per unit

$enter the total cost per unit in dollars

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