Computing Markups The predicted annual costs for Mighty Motors are as follows:

Manufacturing Costs	Selling and Administrative Costs
Variable	$ 250,000	Variable	$250,000
Fixed	350,000	Fixed	550,000

Average total assets for the year are predicted to be $7,500,000.

(a) If management desires a 10% rate of return on total assets, what are the markup percentages for total variable costs and for total manufacturing costs? (Round your answer to the nearest whole percent.)

Markup on variable costs Answer %

Markup on manufacturing costs Answer %

(b) If the company desires a 8% rate of return on total assets, what is the markup percentage on total manufacturing costs for (1) unassigned costs and

(2) desired profit? Note: The markup percentage on total manufacturing costs is 233%. Compute the markup percentage for each component. Note: Round your answers to the nearest whole percent.

Markup to cover unassigned costs Answer in %

Markup to cover desired profit Answer in %