Crane Co. has variable manufacturing costs per unit of $27, and fixed manufacturing cost per unit of $20. Variable selling and administrative costs per unit are $5, while fixed selling and administrative costs per unit $8. Maggie desires an ROI of $12.38 per unit. If Crane Co. uses the absorption-cost approach, what is its markup percentage? 20.63% 10.32% 54.00% 30.95%

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Crane Co. has variable manufacturing costs per unit of $27, and fixed manufacturing cost per unit of $20. Variable selling and administrative costs per unit are $5, while fixed selling and administrative costs per unit $8. Maggie desires an ROI of $12.38 per unit. If Crane Co. uses the absorption-cost approach, what is its markup percentage?
20.63%
10.32%
54.00%
30.95%
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