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Case: 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 13,500Unit product cost $ 20.00Estimated annual selling and administrative expenses $ 26,100Estimated investment required by the company $ 570,000Desired 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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