(Appendix 12A) Marvel Company estimates that the following costs and activity would be associated with the manufacture and sale of one unit of product Y:
|Number of Units Sold Annually||20,000|
|Unit Product Cost||$25|
|Selling, General, and Administrative Expenses||$130,000|
If the company uses the absorption costing approach to cost-plus pricing and desires a 15% rate of return on investment (ROI), what would be the required markup on absorption cost for product Y?