Currington Company wants to use absorption cost$-$plus pricing to set the selling price on a newly remodeled product. The company plans to invest $$160,000$ in operating assets to produce and sell $12,000$ units. Its required return on investment $($ROI$)$ in its operating assets is $16\%.$ The accounting department has provided cost estimates for the new product as follows:

Per Unit Total

Direct materials $ $4\mathrm{.}50$

Direct labor $ $3\mathrm{.}50$

Variable manufacturing overhead $ $1\mathrm{.}50$

Fixed manufacturing overhead $ $72,000$

Variable selling and administrative expenses $ $1\mathrm{.}50$

Fixed selling and administrative expenses $ $15,920$

Required:

What is the unit product cost for the remodeled product?

Note: Round intermediate calculations and final answer to $2$ decimal places.

What is the markup percentage on absorption cost for the remodeled product?

Note: Round intermediate calculations to $2$ decimal places.

What selling price would the company establish for its remodeled product using a markup percentage on absorption cost$?$

Note: Round intermediate calculations and final answer to $2$ decimal places.

Suppose the company actually produced and sold only $10,000$ units $($instead of its planned sales volume of $12,000$ units$)$ at the selling price that you derived in requirement $3.$ What ROI did the company actually earn at this lower sales volume?

Note: Round intermediate calculations to $2$ decimal places. Round your percentage answer to $1$ decimal place.

Assume that the company wants to raise the price of its newly remodeled product with the intention of achieving the product$$s desired ROI at the lower sales volume of $10,000$ units. Using absorption cost$-$plus pricing, what would be the revised selling price at this lower sales volume?