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Martin Company uses the absorption costing approach to cost-plus pricing. It is considering the introduction...

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Accounting

Martin Company uses the absorption costing approach to cost-plus pricing. It is considering the introduction of a new product. To determine a selling price, the company gathered the following information:
Number of units to be produced and sold each year 8,500
Unit product cost $ 40.00
Estimated annual selling and administrative expenses $ 75,000
Estimated investment required by the company $ 650,000
Desired return on investment (ROI)12%
Required:
Compute the markup percentage on absorption cost required to achieve the desired ROI.
Compute the selling price per unit.
Note: Do not round intermediate calculations. Round your answer to 2 decimal places.
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