Dieckman Company makes a product with the following costs:

	Per Unit	Per Year
Direct materials	$17.60
Direct labor	$10.90
Variable manufacturing overhead	$3.40
Fixed manufacturing overhead		$665,600
Variable selling and administrative expenses	$3.00
Fixed selling and administrative expenses		$740,000

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 64,000 units per year.

The company has invested $340,000 in this product and expects a return on investment of 14%.

Direct labor is a variable cost in this company.

The markup on absorption cost is closest to: (Round your intermediate calculations to 2 decimal places and final answers to 1 decimal place.)

34.4%

14.0%

82.9%

36.2%