The predicted 2017 costs for Mighty Motors are as follows:

Manufacturing Costs		Selling and Administrative Costs
Variable	$ 200,000	Variable	$600,000
Fixed	400,000	Fixed	300,000

Average total assets for 2017 are predicted to be $7,000,000.

(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 costs Answer

Incorrect 0.00 points out of 1.00

% Markup on manufacturing costs Answer

Incorrect 0.00 points out of 1.00

%

(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 costs Answer

Incorrect 0.00 points out of 1.00

% Markup to cover desired profit Answer

Correct 1.00 points out of 1.00

%