Cost$-$Based Pricing Decision

Jeremy Costa, owner of Costa Cabinets Inc., is preparing a bid on a job that requires $$2,430$ of direct materials, $$2,309$ of direct labor,

and $$1,215$ 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.

X $\%$

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

$

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Markup Percentage $=$ Gross margin$/$Cost of Goods Sold