Ritner Corporation manufactures a product that has the following costs:

Per UnitPer YearDirect materials$ 23.90 Direct labor$ 15.40 Variable manufacturing overhead$ 3.80 Fixed manufacturing overhead $ 451,200Variable selling and administrative expenses$ 3.20 Fixed selling and administrative expenses $ 593,300

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 30,700 units per year.

The company has invested $361,700 in this product and expects a return on investment of 9%.

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.)