Calculate various amounts using absorption-cost and variable-cost approaches. P9.47A (LO 3, 4) Weather Guard Windows Inc. is setting a target price on its newly designed tinted window. Cost data for the window at a budgeted volume of 4,000 units are as follows: Direct materials Direct labour Variable manufacturing overhead Fixed manufacturing overhead Per Unit $100 Total 70 20 $120,000 Variable selling and administrative expenses 10 Fixed selling and administrative expenses 102,000 Weather Guard Windows uses cost-plus pricing to provide the company with a 25% ROI on its tinted window line. It has committed a total of $1,016,000 in assets to the production of the new tinted window. Instructions a. Calculate the markup percentage under the absorption-cost approach that will allow Weather Guard Windows to realize its desired ROI. a. 45% b. Calculate the target price of the window under the absorption-cost approach, and show proof that the desired ROI is realized. e. Calculate the markup percentage under the variable-cost approach that will allow Weather Guard Windows to realize its desired ROI. (Round to three decimal places.) d. Calculate the target price of the window under the variable-cost approach, and show proof that the desired ROI is realized. e. Since both the absorption-cost approach and the variable-cost approach produce the same target price and provide the same ROI, why do both methods exist? Isn't one method clearly better than the other?