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Kirk Co. manufactures mobile cellular equipment and develops a price for the product by using a variable cost concept. Kirk incurs variable costs of $1,900,000 in the production of 100,000 units. Fixed costs total $50,000. The company employs $4,725,000 of assets and wishes to earn a profit equal to a 10% rate of return on assets.
Question 1: Compute a markup percentage based on the variable costs concept. Round your answer to one decimal place.
Question 2: Determine a selling price. Round your answer to two decimal places.
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