Trepan Corporation is contemplating the introduction of a new product. The company has gathered the following information concerning the product:

Number of units to be produced and sold each year		25,000
Investment required by the company	$	300,000
Projected unit manufacturing cost	$	30
Projected annual selling and administrative expenses	$	90,000
Desired rate of return on investment	$	20	%

The company uses the absorption costing approach to cost-plus pricing as described in the text.

Compute the market percentage on absorption cost

Compute the selling price