Eckert Company is involved in producing and selling high-end golf equipment. The company has recently been involved in developing various types of laser guns to measure yardages on the golf course. One small laser gun, called LittleLaser, appears to have a very large potential market. Because of competition, Eckert does not believe that it can charge more than $80 for LittleLaser. At this price, Eckert believes it can sell 100,000 of these laser guns. Eckert will require an investment of $10,000,000 to manufacture, and the company wants an ROI of 15%. Determine the target cost for one LittleLaser.

Target cost

$

Rap Corporation produces outdoor portable fireplace units. The following per unit cost information is available: direct materials $19, direct labor $22, variable manufacturing overhead $11, fixed manufacturing overhead $28, variable selling and administrative expenses $8, and fixed selling and administrative expenses $16. The company's ROI per unit is $16.

Compute Rap Corporations markup percentage using absorption-cost pricing.

Absorption-cost pricing markup percentage

%

Compute Rap Corporations markup percentage using variable-cost pricing. (Round answer to 2 decimal places, e.g. 10.50%.)

Variable-cost pricing markup percentage

%