Roal 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 37,000 units per year.
The company has invested $220,000 in this product and expects a return on investment of 9%.
Required:
a. Compute the markup on absorption cost.
b. Compute the selling price of the product using the absorption costing approach.
Definitions:
Declarative Knowledge
Information or facts that an individual knows, which can be stated or described, such as events, dates, or concepts.
Knowledge Compilation
Knowledge Compilation is the process of integrating new information into existing cognitive schemas, making that information more accessible and usable for decision-making or problem-solving.
Procedural Knowledge
Knowledge of how to perform tasks or procedures, often acquired through practice and experience.
Generalization
The ability to apply learned behaviors or responses to new and similar situations.
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