question 15

Pharoah Co. has variable manufacturing costs per unit of $40, and fixed manufacturing cost per unit of $20. Variable selling and administrative costs per unit are $10, while fixed selling and administrative costs per unit are $1. Pharoah desires an ROI of $13 per unit. If Pharoah Co. uses the variable cost-plus approach, what is its markup percentage?

40%

68%

70%

28%