Nance Corporation is about to introduce a new product. The following costs would be incurred if 50,000 units are produced and sold each year:

	Per Unit			Total
Variable production costs	$	8		$	400,000
Fixed production costs	$	5		$	250,000
Variable selling and administrative costs	$	2		$	100,000
Fixed selling and administrative costs	$	3		$	150,000

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 $1,350,000. 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: