Bonita Products desires to set a target price for its newest product. Information for a budgeted volume of 8,000 units is shown below. Bonita Products uses cost-plus pricing and management wants a 25% ROI on the new product. Assets of $1,400,000 are committed to production of the new product. (a) Compute the markup percentage under variable costing that will allow Bonita Products its desired ROI. (Round answer to 2 decimal places, e.g. 10.50\%.) Markup Percentage % (b) Compute the target price of the new product under variable-cost pricing. (Round answer to 2 decimal places, e.g. 10.50.) Target price Bonita Products desires to set a target price for its newest product. Information for a budgeted volume of 8,000 units is shown below. Bonita Products uses cost-plus pricing and management wants a 25% ROI on the new product. Assets of $1,400,000 are committed to production of the new product. (a) Compute the markup percentage under variable costing that will allow Bonita Products its desired ROI. (Round answer to 2 decimal places, e.g. 10.50\%.) Markup Percentage % (b) Compute the target price of the new product under variable-cost pricing. (Round answer to 2 decimal places, e.g. 10.50.) Target price