The management of Heimrich Corporation would like to set the selling price on a new product using the absorption costing approach to cost-plus pricing. The company's accounting department has supplied the following estimates for the new product:

	Per Unit		Per Year
Direct materials	$	29
Direct labor	$	19
Variable manufacturing overhead	$	12
Fixed manufacturing overhead			$	63,000
Variable selling and administrative expenses	$	7
Fixed selling and administrative expenses			$	10,260

Management plans to produce and sell 4,500 units of the new product annually. The new product would require an investment of $540,000 and has a required return on investment of 12%.

Required:
a.	Determine the unit product cost for the new product. (Omit the "$" sign in your response.)

Unit product cost

$

b.	Determine the markup percentage on absorption cost for the new product. (Omit the "%" sign in your response.)

Markup percentage on absorption cost

%

c.	Determine the target selling price for the new product using the absorption costing approach. (Round your intermediate and final answer to 2 decimal places. Omit the "$" sign in your response.)

Target selling price

$