Ritner Corporation manufactures a product that has the following costs:

	Per Unit			Per Year
Direct materials	$	24.20
Direct labor	$	15.70
Variable manufacturing overhead	$	4.10
Fixed manufacturing overhead				$	451,500
Variable selling and administrative expenses	$	3.50
Fixed selling and administrative expenses				$	593,600

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 31,000 units per year.

The company has invested $362,000 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.)