Diedrich Corporation makes a product with the following costs: Per Unit Per Year Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Variable selling and administrative expenses 1.00 Fixed selling and administrative expenses $19.60 $12.90 s5.40 $949,200 $940,000 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 84,000 units per year The company has invested $540,000 in this product and expects a return on investment of 12%. 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 answer to 1 decimal place.)