Wagon Wheels manufactures personalized wagons for toddlers. Each wagon goes through a woodworking process, painting, and assembly. Wagon Wheels produces and sells 7,200 wagons per year. Wagon Wheels' owners have invested $55,000 in the business and desire a return of 15%. Wagon Wheels costs include

REQUIRED
A. Determine the mark-up percentage using
1. Absorption cost-based pricing
2. Variable cost-based pricing
3. Total cost-based pricing
B. Determine the selling price for each mark-up percentage calculated in Part 1.
C. Discuss the other factors that Wagon Wheels must consider when setting their selling prices?

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Variable Fixed $240,000 per year $30,000 per year Direct labour salaries Office staff Materials Supplies Marketing Overhead $45 per wagon 4,000 per year $3.50 per wagon 2,400 per year $1.50 per wagon 850 per year