Falcon Inc.manufactures Product B, incurring variable costs of $15.00 per unit and fixed costs of $70,000.Falcon desires a profit equal to a 12% rate of return on assets, $785,000 of assets are devoted to producing Product B, and 100,000 units are expected to be produced and sold.
a Compute the markup percentage, using the total cost concept.
b Compute the selling price of Product B.
Round your intermediate calculations and final answer to two decimal places.

Question

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The Answer of Falcon Inc.manufactures Product B, incurring variable costs of $15.00 per unit and fixed costs of $70,000.Falcon desires a profit equal to a 12% rate of return on assets, $785,000 of assets are devoted to producing Product B, and 100,000 units are expected to be produced and sold.
a Compute the markup percentage, using the total cost concept.
b Compute the selling price of Product B.
Round your intermediate calculations and final answer to two decimal places.