Shale Remodeling uses time and materials pricing. It is setting prices for next year using the following information:

Labor rate, including fringe benefits	$	86	per hour
Annual labor hours		3,100	hours
Annual materials purchase	$	1,316,250
Materials purchasing, handling, and storage	$	315,900
Overhead for depreciation, taxes, insurance, etc.	$	780,000
Target profit margin for both labor and materials		25	%

What should Shale set as the materials markup per dollar of materials used?