Exercise 14.20 Wagon Wheels manufactures personalized wagons for toddlers. Each wagon goes through a woodworking process, painting, and assembly. Wagon Wheels produces and sells 7,200 wagons per year. Wagon Wheels' owners have invested $55,000 in the business and desire a return of 15%. Wagon Wheels costs include Variable Fixed $ 240,000 per year $ 30,000 per year $ 45 per wagon Direct labour services Office staff Materials Supplies Marketing Overhead $ 3.5 per wagon $ 1.5 per wagon $ $ $ 4,000 per year 2,400 per year 850 per year The selling and administrative costs should include supplies. Determine the mark-up percentage using (Round all entries to 2 decimal places, e.g. 15.25%.) Mark-up percentage 1. Absorption cost-based pricing 2. Variable cost-based pricing 3. Total cost-based pricing