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part B to the second one Compute markup percentage using variable-cost pricing. The Bathtub Division of Ayayai Plumbing Corporation has recently approached the Faucet Division

part B to the second one

Compute markup percentage using variable-cost pricing.

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The Bathtub Division of Ayayai Plumbing Corporation has recently approached the Faucet Division with a proposal. The Bathtub Division would like to make a special "ivory" tub with gold-plated fixtures for the company's 50-year anniversary. It would make only 4,000 of these units. It would like the Faucet Division to make the fixtures and provide them to the Bathtub Division at a transfer price of $128. If sold externally, the estimated unit variable cost would be $112. However, by selling internally, the Faucet Division would save $5 per unit on variable selling expenses. The Faucet Division is currently operating at full capacity. Its standard unit sells for $40 per unit and has variable costs of $23. Compute the minimum transfer price that the Faucet Division should be willing to accept. Minimum transfer price $ Should they accept this offer? They this offer. Ayayai Corporation produces outdoor portable fireplace units. The following unit cost information is available: direct materials $25, direct labor $29, variable manufacturing overhead $16, fixed manufacturing overhead $10, variable selling and administrative expenses $5, and fixed selling and administrative expenses $17. The company's ROI per unit is $18. (a) Your answer is incorrect. Compute Ayayai Corporation's markup percentage using absorption-cost pricing. (Round answer to 2 decimal places, e.g. 10.50%. Absorption-cost pricing markup percentage %

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