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Goshawks Co. produces an automotive product and incurs total manufacturing costs of $2,600,000 in the production of 80,000 units.The company desires to earn a profit equal to a 12% rate of return on assets of $960,000.Total selling and administrative expenses are $105,000.
a. Calculate markup percentage, using the product cost concept. Rpund to one decimal place.
b. Compute the price of the automotive product. Round your answer to two decimal places.
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