Silco Pty Ltd manufactures various lines of computer equipment. They are planning to introduce a line of laptop computers in January 2008. Current plans call for the production and sale of 1000 computers with estimated production costs as follows. 
The average amount of capital invested in the laptop computer line is $900 000 and Silco's target return on investment for the line is 18 per cent. If Silco uses cost-plus pricing based on absorption cost, determine the mark-up percentage the company must use.
Definitions:
Investment in Bonds
Financial investments made by purchasing debt securities issued by corporations or governments, aiming to earn interest income.
Equity Method
An accounting technique used for recording investments in which the investor has significant influence over the investee but does not exercise full control.
Significant Influence
This term refers to the power to participate in the financial and/or operating policy decisions of another entity, but not control those policies. It is often quantified by owning 20% to 50% of the voting shares of the investee company.
Investee
The company whose stock is purchased by the investor.
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