Quamma Corporation makes a product that has the following costs:

	Per Unit			Per Year
Direct materials	$	17.80
Direct labor	$	15.40
Variable manufacturing overhead	$	2.70
Fixed manufacturing overhead				$	961,800
Variable selling and administrative expenses	$	4.40
Fixed selling and administrative expenses				$	567,000

The company uses the absorption costing approach to cost-plus pricing as described in the text. The pricing calculations are based on budgeted production and sales of 42,000 units per year.

The company has invested $670,000 in this product and expects a return on investment of 12%.

Required:

a. Compute the markup on absorption cost. (Round your intermediate and final answer to 2 decimal places.)

b. Compute the selling price of the product using the absorption costing approach. (Round your intermediate and final answer to 2 decimal places.)