Martinez Wheels manufactures personalized wagons for toddlers. Each wagon goes through a woodworking process, painting, and assembly. Martinez Wheels produces and sells 6,500 wagons per year. Martinez Wheels' owners have invested $49,900 in the business and desire a return of 14%. Martinez Wheels costs include

VariableFixedDirect labour services$228,150 per yearOffice staff$26,650 per yearMaterials$45 per wagonSupplies$3,250 per yearMarketing$3.50 per wagon$1,950 per yearOverhead$1.50 per wagon$650 per year

The selling and administrative costs should include supplies.

(a)

Determine the mark-up percentage using (Round all entries to 2 decimal places, e.g. 15.25%.)

Mark-up percentage1.Absorption cost-based pricing

%2.Variable cost-based pricing

%3.Total cost-based pricing