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*P21.8A (LO 5) Writing Anderson Windows Inc. is in the process of setting a target price on its newly designed tinted window. Cost data relating

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*P21.8A (LO 5) Writing Anderson Windows Inc. is in the process of setting a target price on its newly designed tinted window. Cost data relating to the window at a budgeted volume of 4,000 units are as follows. Anderson Windows uses cost-plus pricing methods that are designed to provide the company with a 25% ROI on its tinted window line. A total of $1,016,000 in assets is committed to production of the new tinted window. Instructions a. Compute the markup percentage under absorption-cost pricing that will allow Anderson Windows to realize its desired ROI. b. Compute the target price of the window under absorption-cost pricing, and show proof that the desired ROI is realized. c. Compute the markup percentage under variable-cost pricing that will allow Anderson Windows to realize its desired ROI. (Round to three decimal places.) d. Compute the target price of the window under variable-cost pricing, and show proof that the desired ROI is realized. e. Since both absorption-cost pricing and variable-cost pricing produce the same target price and provide the same desired ROI, why do both methods exist? Isn't one method clearly superior to the other

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