Cost$-$Based Pricing Decision

Jeremy Costa, owner of Costa Cabinets Inc., is preparing a bid on a job that requires $$1,800$ of direct materials, $$1,890$ of direct labor, and $$1,260$ of overhead. Jeremy normally applies a standard

markup based on cost of goods sold to arrive at an initial bid price. He then adjusts the price as necessary in light of other factors $($e$.$g$.,$ competitive pressure$).$ Last year's income statement is as

follows:

Required:

Calculate the markup that Jeremy will use. Round your answer to one decimal place.

$\%$

What is Jeremy's initial bid price? Round your answer to the nearest dollar.

$