The markup percentage for setting prices as a percentage of total manufacturing costs is

ACCOUNTING

Multiple Choice

Meyer Corporation budgeted the following costs for the production of its one and only product for the next fiscal year:



Direct materials $ 562,500

Direct labor 390,000

Manufacturing overhead

Variable 420,000

Fixed 322,500

Selling and administrative

Variable 180,000

Fixed 240,000

Total costs $2,115,000



Meyer has an annual target operating income of $450,000.



The markup percentage for setting prices as a percentage of total manufacturing costs is

a. 51%.

b. 125%.

c. 185%.

d. 245%.

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