Rizer 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 40,000 units per year.
The company has invested $200,000 in this product and expects a return on investment of 15%.
Required:
a.Compute the markup on absorption cost.
b.Compute the selling price of the product using the absorption costing approach.
Definitions:
Standard Deviation
A statistical metric that quantifies the spread or variability of a dataset, highlighting how far individual measurements deviate from the dataset's mean on average.
Mean
The average of a set of numerical values, calculated by adding them together and dividing by the number of values.
Median
A measure of central tendency in statistics that represents the middle value in a sorted list of numbers.
Standard Deviation
A numerical indicator that calculates the degree of spread or variability among a series of data points.
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