Per unit
Variable manufacturing cost	$	370
Applied fixed manufacturing cost		290	*
Absorption manufacturing cost		660
Variable selling and administrative cost		58
Allocated fixed selling and administrative cost		110	*
Total cost	$	828
Variable manufacturing cost	$	370
Variable selling and administrative cost		58
Total variable cost	$	428

* Based on planned monthly production of 44 units (or 528 units per year).

The target profit is $49,000

Use the general formula for determining a markup percentage to compute the required markup percentage using Variable manufacturing cost.

Markup percentage

%

Use the general formula for determining a markup percentage to compute the required markup percentage using Absorption manufacturing cost.

Markup percentage

%