Cost-Based Pricing Decision Jeremy Costa, owner of Costa Cabinets Inc., is preparing a bid on a job that requires $1,980 of direct materials, $1,881 of direct labor, and $1,386 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: Sales $130,000 Cost of goods sold 62,400 Gross margin $67,600 Selling and administrative expenses 46,300 Operating income $21,300 Required: 1. Calculate the markup that Jeremy will use. Round your answer to one decimal place. % 2. What is Jeremy's initial bid price? Round your answer to the nearest dollar