Martin Company uses the absorption costing approach to cost-plus pricing. It is considering the introduction of a new product. To determine a selling price, the company has gathered the following information:

Number of units to be produced and sold each year	14,000
Unit product cost	$ 25
Estimated annual selling and administrative expenses	$ 50,000
Estimated investment required by the company	$ 750,000
Desired return on investment (ROI)	12%

Required:

1. Compute the markup percentage on absorption cost required to achieve the desired ROI.

2. Compute the selling price per unit.