Assume that a company uses the absorption costing approach to cost-plus pricing. It is considering the introduction of a new product. To determine a selling price, the company has gathered the following information:

Number of units to be produced and sold each year	15,000
Unit product cost	$ 30
Estimated annual selling and administrative expenses	$ 90,900
Estimated investment required by the company	$ 780,000
Desired return on investment (ROI)	12%

What is the markup percentage on absorption cost required to achieve the desired ROI?

Multiple Choice

41%

36%

46%

51%