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Ritner Corporation manufactures a product that has the following costs: Per Unit Per Year Direct materials $ 24.10 Direct labor $ 15.60 Variable manufacturing overhead

Ritner Corporation manufactures a product that has the following costs:

Per Unit Per Year
Direct materials $

24.10

Direct labor $

15.60

Variable manufacturing overhead $

4.00

Fixed manufacturing overhead $

451,400

Variable selling and administrative expenses $

3.40

Fixed selling and administrative expenses $

593,500

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 30,900 units per year.

The company has invested $361,900 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.)

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