Graphics Plus is a graphic design studio that specializes in logos and business stationery. The business made a $65,000 investment. The desired return is 12%. Graphic Plus designs and prints 3,000 orders per year. Graphic Plus incurs the following costs:

	Variable	Fixed
Design costs	$45 per order	$50,000 per year
Production costs	$125 per order	$39,000 per year
Marketing costs		$2,500 per year
Shipping costs	$15 per order

Required

1. Determine the mark-up percentage using absorption cost-based pricing.
2. Determine the selling price based on the absorption cost-based pricing.
3. Determine the mark-up percentage using total variable cost-based pricing.

4.Determine the selling price based on the total variable cost-based pricing.