Solution-Calculate markup percentage using absorption-cost

Calculate markup percentage using absorption-cost pricing

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Reference no: EM132547680

Ahmed Corporation makes a mechanical stuffed alligator. The following information is available for Ahmed Corporation's expected annual volume of 500,000 units:

Per Unit Total

Direct materials $15

Direct labour 9

Variable manufacturing overhead 12

Fixed manufacturing overhead $400,000

Variable selling and administrative expenses 4

Fixed selling and administrative expenses 130,000

The company has a desired ROI of 30%. It has invested assets of $23,300,000.

Question 1: Using absorption-cost pricing, calculate the markup percentage. (Round answer to 2 decimal places, e.g. 15.25%.)

Reference no: EM132547680

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Calculate markup percentage using absorption-cost pricing

Reference no: EM132547680

Reference no: EM132547680

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