Question 2 of 5 - / 30 View Policies Current Attempt in Progress Tanek Industries manufactures and sells three different models of wet-dry shop vacuum cleaners. Although the shop vacs vary in terms of quality and features, all are good sellers. Tanek is currently operating at full capacity with limited machine time. Sales and production information relevant to each model follows. Selling price Variable costs and expenses Machine hours required Economy $45 $24 0.5 Product Standard $75 $30 0.8 Deluxe $149 $69 1.6 (a 1) Calculate contribution margin per unit. Product Standard Economy Deluxe Contribution margin per unit $ 21 S 45 $ 80 Save for Later Last saved 1 day ago. Attempts: 0 of 1 used Submit Answer Saved work will be auto-submitted on the due date. Question 5 of 5 - / 30 !!! View Policies Current Attempt in Progress Lovell Computer Parts Inc. is in the process of setting a selling price on a new component it has just designed and developed. The following cost estimates for this new component have been provided by the accounting department for a budgeted volume of 45,000 units. Total Per Unit $45 $27 $21 Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Variable selling and administrative expenses Fixed selling and administrative expenses $540,000 $15 $225,000 Lovell Computer Parts management requests that the total cost per unit be used in cost-plus pricing its products. On this particular product, management also directs that the target price be set to provide a 27% return on investment (ROI) on invested assets of $1,000,000. (a) Compute the markup percentage and target selling price that will allow Lovell Computer Parts to earn its desired ROI of 27% on this new component. (Round markup percentage to 2 decimal places, e.g. 10.50%.) Markup percentage Target selling price GA $