Caan Corporation produces industrial robots for high-precision manufacturing. The following information is given for Caan Corporation:

		Per Unit		Total
Direct materials		$390
Direct labour		280
Variable manufacturing overhead		70
Fixed manufacturing overhead				$2,100,000
Variable selling and administrative expenses		36
Fixed selling and administrative expenses				385,000

The company has a desired ROI of 30%. It has invested assets of $51,450,000. It expects to produce 3,500 units each year.

1. Calculate the markup percentage and target selling price using absorption-cost pricing. (Round markup percentage to 3 decimal places, e.g. 15.250% and target selling price to 0 decimal places, e.g. 5,250.)

Markup percentage		enter percentages rounded to 3 decimal places	%
Target selling price		$enter a dollar amount rounded to 0 decimal places

2. Calculate the markup percentage and target selling price using using variable-cost pricing (Round markup percentage to 3 decimal places, e.g. 15.250% and target selling price to 0 decimal places, e.g. 5,250.)

Markup percentage		enter percentages rounded to 3 decimal places	%
Target selling price		$enter a dollar amount rounded to 0 decimal places