Nance Corporation is about to introduce a new product. The following costs would be incurred if 28,000 units are produced and sold each year, Per Unit $ 9 $ 5 $ 3 Total Variable production costs $ 252,000 Fixed production costs $ 140,000 Variable selling and administrative costs $ 84,000 Fixed selling and administrative costs $ 5 $ 140,000 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 $1.290,000 The company requires a 30% rate of return on investment in all new products. The markup under the absorption costing approach would be closest to 01 Multiple Choice 155.9% 98.7% 122.5% 88.9% Diednich Corporation makes a product with the following costs: Per Unit Per Year Direct materials $ 19.60 Direct labor $ 12.90 Variable manufacturing overhead $ 5.40 Fixed manufacturing overhead $ 949,200 Variable selling and administrative expenses $ 1.00 Fixed selling and administrative expenses $ 940,000 The company uses the absorption costing approach to cost plus pricing described in the text. The pricing calculations are based on budgeted production and sales of 84,000 units per year. The company has invested $540,000 in this product and expects a return on investment of 12%. Direct labor is a variable cost in this company The markup on absorption cost is closest to: (Round your intermediate calculations to 2 decimal places and final answer to 1 decimal place.) Multiple Choice O 24.8% O 12.0% 26.3% O 73.0%