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Problem 22-8A Anderson Windows Inc. is in the process of setting a target price on its newly designed tinted window. Cost data relating to the
Problem 22-8A 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. Per Unit 100 $ 70 $ 20 Total Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Variable selling and administrative expenses Fixed 120,000 10 selling and administrative expenses 102,000 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. Your answer is correct. Compute the markup percentage under absorption-cost pricing that will allow Anderson Windows to realize its desired ROI. (Round answer to 2 decimal places, e.g. 10.50.) Markup Percentage T 45
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