Average Rate of Return-New Product Galactic Inc. is considering an investment in new equipment that will be used to manufacture a smartphone. The phone is expected to generate additional annual sales of 7,000 units at $265 per unit. The equipment has a cost of $651,000, residual value of $49,000, and an eight-year life. The equipment can only be used to manufacture the phone. The cost to manufacture the phone follows: Cost per unit: Direct labor Direct materials Factory overhead (including depreciation) $45.00 176.00 30.00 $251.00 Total cost per unit Determine the average rate of return on the equipment. If required, round to the nearest whole percent. 15.05X