E-books Company is planning the introduction of a new product. The following information relating to the product has been assembled: $15 $3 Variable Costs (per unit): Materials, Labour, and Overhead Selling and Administrative Fixed Costs per Year: Manufacturing Overhead Selling and Administrative Investment Required Required Rate of Return Total Units to Be Produced and Sold Each Year $375,000 $300,000 $750,000 20% 75,000 The company uses the absorption costing approach to pricing. (Appendix 12A) The markup percentage that would be needed on the new product is closest to which of the following? 12.5%. 2400