Compute various amour absorption cost pricing variable cost pricing. *P8.8A (LOS), AP Writing Anderson Windows Inc. is in the process of setting a target price on its newly designed tinted window. Cost data relating to the window at a budgeted volume of 4,000 units are as follows. Per Unit Total Direct materials $100 Direct labor $ 70 Variable manufacturing overhead Fixed manufacturing overhead $120,000 Variable selling and administrative expenses $ 10 Fixed selling and administrative expenses $102,000 Anderson Windows uses cost-plus pricing methods that are designed to provide the company with a 25% ROI on its tinted window line. A total of $1,016,000 in assets is committed to production of the new tinted window $ 20 a. 45% Instructions 1. Compute the markup percentage under absorption-cost pricing that will allow Anderson Windows to realize its desired ROL b. Compute the target price of the window under absorption-cost pricing and show proof that the desired ROI is realized c. Compute the markup percentage under variable-cost pricing that will allow Anderson Windows to realize its desired ROL (Round to three decimal places. b. Compute the target price of the window under absorption-cost pricing, and show proof that the desired ROI is realized c. Compute the markup percentage under variable-cost pricing that will allow Anderson Windows to realize its desired ROI. (Round to three decimal places.) d. Compute the target price of the window under variable-cost pricing and show proof that the desired ROL is realized. c. Since both absorption-cost pricing and variable-cost pricing produce the same target price and provide the same desired ROI, why do both methods exist? Isn't one method clearly superior to the other? Continuing Cases