Maggie Co Has Variable Manufacturing Costs Per Unit of $20, and and Fixed

Multiple Choice

Maggie Co. has variable manufacturing costs per unit of $20, and fixed manufacturing cost per unit is $15. Variable selling and administrative costs per unit are $4, while fixed selling and administrative costs per unit are $6. Maggie desires an ROI of $7.50 per unit. If Maggie Co. uses the absorption-cost approach, what is its markup percentage?

A) 8.33%
B) 16.67%
C) 25%
D) 50%