Longwood, Inc. manufactures various lines of computer equipment and is planning to introduce a new line of laptops. Current plans call for the production and sale of 1,000 units, with estimated costs as follows:

Variable costs:
Manufacturing	$	463,000
Selling and Administrative		113,000
Total variable costs					$	576,000
Fixed costs:
Manufacturing	$	313,000
Selling and Administrative		193,000
Total fixed costs						506,000
Total costs					$	1,082,000

The average amount of capital invested in the laptop product line is $870,000 and Longwoods target return on investment is 20%.

If Longwood uses cost-plus pricing based on absorption cost, the markup percentage the company must use would be: