ABC provided the following information:

$65.00	Per Unit Direct Materials
$48.00	Per Unit Direct Labour
$16.00	Per Unit Variable Manufacturing Overhead
$12.00	Per Unit Variable Selling Expenses
$250,000	Fixed Manufacturing Overhead
$55,000	Fixed Selling and Admin
16%	ABC's Desired ROI
$8,250,000	Invested Assets
4,000	Units per year is the expected Production and Sales.

Instructions

Calculate each of the following:

A. Cost per unit of fixed manufacturing overhead, fixed selling, and administrative expenses.

B. Desired ROI per unit.

C. Markup percentage using the absorption-cost approach. Show your calculations. Create an Income Statement with ROI to confirm you are correct.

D. Markup percentage using the variable-cost approach. Show your calculations. Create an Income Statement with ROI to confirm you are correct.