Schopp Corporation makes a mechanical stuffed alligator that sings the Martian national anthem. The following information is available for Schopp Corporations anticipated annual volume of 500,000 units.

		Per Unit			Total
Direct materials		$ 7
Direct labor		$11
Variable manufacturing overhead		$15
Fixed manufacturing overhead					$3,000,000
Variable selling and administrative expenses		$14
Fixed selling and administrative expenses					$1,500,000

The company has a desired ROI of 25%. It has invested assets of $28,000,000.

	Your answer is correct.

Compute the total cost per unit.

Total cost

$

per unit

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Compute the desired ROI per unit.

ROI

$

per unit

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Using absorption-cost pricing, compute the markup percentage. (Round answer to 2 decimal places, e.g. 10.50%.)

Absorption-cost pricing markup percentage

%

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Using variable-cost pricing, compute the markup percentage. (Round answer to 2 decimal places, e.g. 10.50%.)

Variable-cost pricing markup percentage

%