MBI, Inc., had sales of $39 million for fiscal 2016. The company's gross profit ratio for that year was 22%.

Required:

a. Calculate the gross profit and cost of goods sold for MBI, Inc., for fiscal 2016. (Enter your answers in millions rounded to 2 decimal places. (i.e., 5,500,000 should be entered as 5.50)

Gross profit: million:

Cost of goods sold: million:

b. Assume that a new product is developed and that it will cost $474 to manufacture. Calculate the selling price that must be set for this new product if its gross profit ratio is to be the same as the average achieved for all products for fiscal 2016. (Do not round intermediate calculations. Enter your answer in dollars rounded to 2 decimal places.)

Selling price