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Bramble Windows Inc. is in the process of setting a target price on its newly designed tinted window. Cost data relating to the window at
Bramble Windows Inc. is in the process of setting a target price on its newly designed tinted window. Cost data relating to the window at a budgeted volume of 5,120 units are as follows. Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Variable selling and administrative expenses Fixed selling and administrative expenses Per Unit \$ 100 \$ 80 \$ 10 \$ 10 Total $153,600 \$ 130,560 Bramble Windows uses cost-plus pricing methods that are designed to provide the company with a 25% ROI on its tinted window line. A total of $1,300,480 in assets is committed to production of the new tinted window. A. Compute the markup percentage under absorption-cost pricing that will allow Bramble Windows to realize its deaired ROI. B. Compute the target price of the window under absorption-cost pricing. C. Compute the markup percentage under variable-cost pricing that will allow Bramble Windows to Realize its desired ROI. (Round answer to 2 decima places, e.g. 10.50\%) D. Compute the target price of the window under variable-cost pricing
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