Hi I need help with the following question please:

Green Gables Company makes a product that has the following costs:

Per unit

Per year

Direct materials

$17.30

Direct labour

12.90

Variable manufacturing overhead

4.20

Fixed manufacturing overhead

$916,800

Variable SG&A expenses

2.00

Fixed SG&A expenses

907,200

The company uses the absorption costing approach to cost-plus pricing. The pricing calculations are based on budgeted production and sales of 48,000 units per year.

The company has invested $360,000 in this product and expects a return on investment of 15%. Required:

1)Compute the markup on absorption cost.

2)Compute the target selling price of the product using the absorption costing approach.