Rap Corporation produces outdoor portable fireplace units. The following per unit cost information is available: direct materials $20, direct labor $25, variable manufacturing overhead $14, fixed manufacturing overhead $21, variable selling and administrative expenses $9, and fixed selling and administrative expenses $11. The company's ROI per unit is $24.

Instructions

Compute Rap Corporation's markup percentage using

(a) Absorption-cost pricing and

(b) Variable-cost pricing.