Please help with the below question.

Green Gables Company makes a product that has the following costs.

Direct materials - $17.30 per unit

Direct labour - $12.90 per unit

Variable manufacturing overhead - $4.20 per unit

Fixed manufacturing overhead - $916,800 per year

Variable SG&A expenses - $2.00 per unit

Fixed SG&A expenses - $907,200 per year

The company uses the absorption costing approach to cost-plus pricing. The pricing calculations are based on budgeted production and sales of 48,000 units per year.

The company has invested $360,000 in this product and expects a return on investment of 15%.

Required:

1)Compute the markup on absorption cost.

2)Compute the target selling price of the product using the absorption costing approach.