Ritner Corporation manufactures a product that has the following costs:

	Per Unit			Per Year
Direct materials	$	23.70
Direct labor	$	15.20
Variable manufacturing overhead	$	3.60
Fixed manufacturing overhead				$	451,000
Variable selling and administrative expenses	$	3.00
Fixed selling and administrative expenses				$	593,100

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 30,500 units per year.

The company has invested $361,500 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.)