Lovell Computer Parts Inc. is in the process of setting a selling price on a new component it has just designed and developed. The following cost estimates for this new component have been provided by the accounting department for a budgeted volume of $50,000$ units.

Per Unit Total

Direct materials

Direct labor

$($a$)$

Compute the markup percentage and target selling price that will allow Lovell Computer Parts to earn its desired ROI of $25\%$ on this new component. $($Round markup percentage to $2$ decimal places, e$.$g$.10\mathrm{.}50\%.)$

Markup percentage $\%$

Target selling price

$ $$