Cost-Based Pricing Decision Jeremy Costa, owner of Costa Cabinets Inc., is preparing a bid on a job that requires $2,070 of direct materials, $2,174 of direct labor, and $1,346 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 Cost of goods sold $102,000 100,100 Gross margin $81,900 Selling and administrative expenses 46,300 Operating income $35,600 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