Cost-Based Pricing Decision Jeremy Costa, owner of Costa Cabinets Inc., is preparing a bid on a job that requires $2,520 of direct materials, $2,520 of direct labor, and $1,638 of overhead. Jerem 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: Sales $175,500 Cost of goods sold 77,220 Gross margin $98,280 Selling and administrative expenses 46,300 Operating income $51,980 Required: 1. Calculate the markup that Jeremy will use. Round your answer to one decimal place. X % 2. What is Jeremy's initial bid price? Round your answer to the nearest dollar