Ritner Corporation Manufactures a Product That Has the Following Costs

Essay

Ritner Corporation manufactures a product that has the following costs:
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 30,400 units per year.The company has invested $361,400 in this product and expects a return on investment of 9%.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.)