Stonemaier Manufacturing Inc. has begun production on a new product. The primary cost of the product is direct materials with a cost of $1,050.

Direct labor is estimated to be $285 per unit, overhead is estimated to be $120 per unit, and selling and administrative expenses are estimated to be $75 per unit.

Stonemaier desires a profit of $480 per unit.

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1. What will be the sales price of the new product?
2. What is the required markup percentage on direct materials in order to achieve the desired profit? (provide your answer in decimal format to two decimal places --> i.e. 53.4% = 0.53)
3. What will be the contribution margin rate for this new product? (provide your answer in decimal format to two decimal places --> i.e. 53.4% = 0.53)