Question 39

Ahmed Corporation makes a mechanical stuffed alligator. The following information is available for Ahmed Corporations expected annual volume of 500,000 units:

		Per Unit		Total
Direct materials		$17
Direct labour		8
Variable manufacturing overhead		11
Fixed manufacturing overhead				$360,000
Variable selling and administrative expenses		4
Fixed selling and administrative expenses				150,000

The company has a desired ROI of 25%. It has invested assets of $24,000,000.

(a)

Using absorption-cost pricing, calculate the markup percentage. (Round answer to 2 decimal places, e.g. 15.25%.)

Markup percentage

%