Solve markup percentage using variable-cost pricing

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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                                      $14

Direct labour                                           9

Variable manufacturing overhead                  11

Fixed manufacturing overhead                  $400,000

Variable selling and administrative expenses        6

Fixed selling and administrative expenses        180,000

The company has a desired ROI of 20%. It has invested assets of $24,200,000.

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

Reference no: EM132547667

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