TB Problem Qu. 13A-120 (Algo) Quamma Corporation makes a... Quamma Corporation makes a product that has the following costs: Direct materials Variable manufacturing overhead Direct labor Fixed manufacturing overhead Variable selling and administrative expenses Fixed selling and administrative expenses Per Unit Per Year $ 17.80 $ 15.40 $ 2.70 $ 4.40 $ 961,800 $ 567,000 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 42,000 units per year. The company has invested $670,000 in this product and expects a return on investment of 12%. 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.) a. Markup percentage on absorption cost b. Selling price 33.70% $ 3,301,855.20