Average Rate of Return-New Product Micro Tek 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 3,800 units at $299 per unit. The equipment has a cost of $353,400, residual value of $26,600, 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 $52.00 203.00 Factory overhead (including depreciation) 34.50 Total cost per unit $289.50 Determine the average rate of return on the equipment. If required, round to the nearest whole percent. %