Lafave Corporation uses the absorption costing approach to cost-plus pricing described in the text to set prices for its products. Based on budgeted sales of 100,000 units next year, the unit product cost of a particular product is $47.20. The company's selling and administrative expenses for this product are budgeted to be $1,917,000 in total for the year. The company has invested $281,000 in this product and expects a return on investment of 10%.

The markup on absorption cost for this product would be closest to:

41.2%

10.0%

50.2%

40.6%