Hana Inc. is considering an investment in new equipment that will be used to manufacture a smartphone. The phone is expected to generate additional annual sales of 5,300 units at $196 per unit. The equipment has a cost of $542,200, residual value of $40,800, and an 8-year life. The equipment can only be used to manufacture the phone. The cost to manufacture the phone follows: Cost per unit: Direct labor $33.00 Direct materials 130.00 Factory overhead (including depreciation) 22.55 Total cost per unit $185.55 Determine the average rate of return on the equipment. If required, round to the nearest whole percent. fill in the blank 1 % Feedback Area Feedback Divide the estimated average annual income by the average investment. Sales price units sold, less unit cost units sold, equals average annual income.