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

		Per Unit		Total
Direct materials		$400
Direct labor		290
Variable manufacturing overhead		70
Fixed manufacturing overhead				$2,046,000
Variable selling and administrative expenses		82
Fixed selling and administrative expenses				363,000

The company has a desired ROI of 20%. It has invested assets of $51,480,000. It expects to produce 3,300 units each year.

(a)

a) 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		-------	%
Target selling price		$-------

b) Calculate the markup percentage and target selling price 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		-------	%
Target selling price		$-------