14.

Martin Company uses the absorption costing approach to cost-plus pricing. It is considering the introduction of a new product. To determine a selling price, the company has gathered the following information:

Number of units to be produced and sold each year		11,000
Unit product cost	$	30
Estimated annual selling and administrative expenses	$	48,000
Estimated investment required by the company	$	700,000
Desired return on investment (ROI)		12	%

Required:

a. Compute the markup percentage on absorption cost required to achieve the desired ROI.

b. Compute the selling price per unit. (Do not round intermediate calculations. Round your answer to 2 decimal places.)