Diedrich Corporation makes a product with the following costs:

Per Unit Per Year

Direct materials

$$17\mathrm{.}70$

Direct labor

$$11\mathrm{.}00$

Variable manufacturing overhead

$$3\mathrm{.}50$

Fixed manufacturing overhead

$$682,500$

Variable selling and administrative expenses $$1\mathrm{.}00$

Fixed selling and administrative expenses

$$750,000$

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 $65,000$ units per year.

The company has invested $$350,000$ in this product and expects a return on investment of $15\%.$

Direct labor is a variable cost in this company. Direct labor is a variable cost in this company. The markup on absorption cost is closest to: round to $2$ decimal places.