Appendix 12A) Lacy Corporation uses the absorption costing approach to cost-plus pricing to set prices for its products. Based on budgeted sales of 86,000 units next year, the unit product cost of a particular product is $81.60. The company's selling, general, and administrative expenses for this product are budgeted to be $1,247,000 in total for the year. The company has invested $360,000 in this product and expects a return on investment of 12%. The markup on absorption cost for this product would be closest to which of the following?

Multiple Choice

• 12.0%.

• 17.8%.

• 18.4%.

• 29.8%.