The Sloan Corporation must invest $176,000 to produce and market 29,000 units of Product X each year. The company uses the absorption costing approach to cost-plus pricing described in the text to set prices for its products. Other cost information regarding Product X is as follows:

	Per Unit				Total
Direct materials	$	11.00
Direct labor	$	7.00
Variable manufacturing overhead	$	6.00
Fixed manufacturing overhead					$	203,000
Variable selling and administrative expenses	$	5.00
Fixed selling and administrative expenses					$	188,500

If Sloan Corporation requires a 10% return on investment, then the markup percentage on absorption cost for Product X (rounded to the nearest percent) would be:

Noreen rechecks 2017-04-04

a. 39%

b. 14%

c. 27%

d. 20%