Reference no: EM132547632

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                                             $12

Direct labour                                                   7

Variable manufacturing overhead                       14

Fixed manufacturing overhead                   $400,000

Variable selling and administrative expenses            7

Fixed selling and administrative expenses           150,000

The company has a desired ROI of 20%. It has invested assets of $22,400,000.

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