The predicted 2014 costs for Osaka Motors are as follows:

Manufacturing Costs Selling and Administrative Costs

Variable$ 100,000 Variable$300,000

Fixed220,000 Fixed200,000

Average total assets for 2014 are predicted to be $5,000,000.

(a) If management desires a 12 percent rate of return on total assets, what are the markup percentages for total variable costs and for total manufacturing costs? (Round your answer to the nearest whole percent.)

Markup on variable costsAnswer

%

Markup on manufacturing costsAnswer

%

(b) If the company desires a 10 percent rate of return on total assets, what is the markup percentage on total manufacturing costs for (1) unassigned costs and (2) desired profit? (Round your answer to the nearest whole percent.)

Markup to cover unassigned costsAnswer

%

Markup to cover desired profitAnswer

%