Ritner Corporation manufactures a product that has the following costs:

Per Unit Per Year

Direct materials $

23.50

Direct labor $

15.00

Variable manufacturing overhead $

3.40

Fixed manufacturing overhead $

450,800

Variable selling and administrative expenses $

2.80

Fixed selling and administrative expenses $

592,900

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 30,300 units per year.

The company has invested $361,300 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.)