Pharoah Corporation makes a mechanical stuffed alligator. The following information is available for Pharoah Corporation's expected annual volume of 500,000 units: Direct materials Direct labour Variable manufacturing overhead Fixed manufacturing overhead Variable selling and administrative expenses Fixed selling and administrative expenses Per Unit $15 9 12 4 Total $400,000 130,000 The company has a desired ROI of 30%. It has invested assets of $23,300,000.
Pharoah Corporation makes a mechanical stuffed alligator. The following information is available for Pharoah Corporation's expected annual volume of 500,000 units: Direct materials Direct labour Variable manufacturing overhead Fixed manufacturing overhead Variable selling and administrative expenses Fixed selling and administrative expenses Per Unit $15 9 12 4 Total $400,000 130,000 The company has a desired ROI of 30%. It has invested assets of $23,300,000.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:Pharoah Corporation makes a mechanical stuffed alligator. The following information is available for Pharoah Corporation's expected
annual volume of 500,000 units:
Direct materials
Direct labour
Variable manufacturing overhead
Fixed manufacturing overhead
Variable selling and administrative expenses
Fixed selling and administrative expenses
Per Unit
$15
9
12
4
Total
$400,000
130,000
The company has a desired ROI of 30%. It has invested assets of $23,300,000.
Transcribed Image Text:Using absorption-cost pricing, calculate the markup percentage. (Round answer to 2 decimal places, e.g. 15.25%.)
Markup percentage
b)
eTextbook and Media
Solution
* Your answer is incorrect.
34.05 %
Using variable-cost pricing, calculate the markup percentage. (Round answer to 2 decimal places, e.g. 15.25%.)
Markup percentage
34.95 %
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