Splish Wheels manufactures personalized wagons for toddlers. Each wagon goes through a woodworking process, painting, and assembly.

Splish Wheels produces and sells 7,900 wagons per year. Splish Wheels' owners have invested $54,800 in the business and desire a return

of 15%. Splish Wheels costs include,

Variable Fixed

Direct labour services $ 274,920per year

Office staff $ 34,760per year

Materials $ 49per wagon

Supplies $ 4,740per year

Marketing $ 3.50per wagon $ 2,370per year

Overhead $ 1.60per wagon $ 790per year

The selling and administrative costs should include supplies.

Determine the mark-up percentage using

1. Absorption cost-based pricing
2. Variable cost-based pricing
3. Total cost-based pricing