Dickson Corporation makes a product with the following costs: Per Unit Per Year Direct materials $ 18.20 Direct labor $ 22.30 Variable manufacturing overhead $ 2.90 Fixed manufacturing overhead $ 1,296,000 Variable selling and administrative expenses $ 1.10 Fixed selling and administrative expenses $ 1,104,000 The company uses the absorption costing approach to cost-plus pricing described in the text. The pricing calculations are based on budgeted production and sales of 60,000 units per year. The company has invested $320,000 in this product and expects a return on investment of 15%. Direct labor is a variable cost in this company. The markup on absorption cost is closest to: 31.2% 15.0% 30.0% 96.5%