ouTB Problem Qu$.12-120($Algo$)$ Quamma Corporation makes a$...$

Quamma Corporation makes 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 $33,000$ units per year.

The company has invested $$580,000$ in this product and expects a return on investment of $16\%.$

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.$)$