Peter Obi produces industrial robots for high-precision manufacturing. The following information is given for Peter Obi:

		Per Unit		Total
Direct materials		$390
Direct labour		300
Variable manufacturing overhead		70
Fixed manufacturing overhead				$1,798,000
Variable selling and administrative expenses		76
Fixed selling and administrative expenses				319,000

The company has a desired ROI of 20%. It has invested assets of $51,330,000. It expects to produce 2,900 units each year.

(a)

Calculate the markup percentage and target selling price using absorption-cost pricing.