Falcon Inc. manufactures Product B, incurring variable costs of $15.00 per unit and fixed costs of $70,000.

Question:

Falcon Inc. manufactures Product B, incurring variable costs of $15.00 per unit and fixed costs of $70,000. Carrigan desires a profit equal to a 12% rate of return on assets, $785,000 of assets are devoted to producing Product B, and 100,000 units are expected to be produced and sold.
(a) Compute the markup percentage, using the total cost concept.
(b) Compute the selling price of Product B?