2. IAMI Corporation manufactures a product that has the following costs: Per Unit ($) Per Year ($) 480 400 160 Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Variable SG&A expenses Fixed SG&A expenses 18,400,000 35 1,400,000 The company uses the absorption costing approach to cost-plus pricing as described in the text. The pricing calculations are based on budgeted production and sales of 40,000 units per year. The company has invested $30,000,000 in this product and expects a return on investment of 15%. Required: a. Compute the markup on absorption cost. b. Compute the selling price of the product using the absorption costing approach