Raymond Company estimates that an investment of $700,000 would be necessary to produce and sell 40,000 units of Product S each year. Costs associated with the new product would be: Variable Costs (per unit): Materials, Labour, and Manufacturing Overhead $35 Selling and Administrative $5 Fixed Cost per Year: Manufacturing Overhead $380,000 Selling and Administrative $240,000 The company requires a 15% return on the investment in all products. The company uses the absorption costing approach to pricing.

(Appendix 12A) What is the markup percentage needed on Product S in order to achieve the company's required return on investment? (Round your final percentage answer to two decimal places).

30.62%

37.34%

40.00%

50.00%