Nance Corporation is about to introduce a new product. The following costs would be incurred if 27,000 units are produced and sold each year: Variable production costs Fixed production costs Variable selling and administrative costs Fixed selling and administrative costs Per Unit $ 11 $ 9 $ 3 $ 5 Total $ 297,000 $ 243,000 $ 81,000 $ 135,000 Nance Corporation uses the absorption costing approach to cost-plus pricing as described in the text. Assume that the company has not yet determined a markup to use on the new product. The new product would require an investment of $1,490,000. The company requires a 35% rate of return on investment in all new products. The markup under the absorption costing approach would be closest to: Multiple Choice 136.6% 109.1% 109.3% 96.6%