Goshawks Co. produces an automotive product and incurs total manufacturing costs of $2,600,000 in the production of 80,000 units. The company desires to earn a profit equal to a 12% return on assets of $960,000. Total selling and administrative expenses are $105,000.
a.Determine the markup percentage, using the product cost method.
b.Compute the selling price per unit of the automotive product.Round the markup percentage to one decimal place and other intermediate computations and final answer to two decimal places.

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The Answer of Goshawks Co. produces an automotive product and incurs total manufacturing costs of $2,600,000 in the production of 80,000 units. The company desires to earn a profit equal to a 12% return on assets of $960,000. Total selling and administrative expenses are $105,000.
a.Determine the markup percentage, using the product cost method.
b.Compute the selling price per unit of the automotive product.Round the markup percentage to one decimal place and other intermediate computations and final answer to two decimal places.