Quamma Corporation makes a product that has the following costs:

	Per Unit	Per Year
Direct materials	$ 18.20
Direct labor	$ 15.80
Variable manufacturing overhead	$ 3.10
Fixed manufacturing overhead		$ 745,600
Variable selling and administrative expenses	$ 4.80
Fixed selling and administrative expenses		$ 571,000

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 32,000 units per year.

The company has invested $710,000 in this product and expects a return on investment of 16%.

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.)