20- Wilde Corporation budgeted the following costs for the production of its one and only product for the next fiscal year. Direct materials Direct labor Manufacturing overhead $1,145,000 Variable Fixed Selling and administrative Variable Fixed 795,000 880,000 650,000 370,000 520,000 $4.360.000 Total costs Wilde has an annual target operating income of $920,000. The markup percentage for setting prices as a percentage of variable manufacturing costs is: A) 52.83% B) 89.73% C) 65.31% D) 21.17% Answer: B Explanation: B) Cost base $1,150,000+ $775,000+ $850,000-$2,775,000 Markup percentage-[($670,000+$410,000+ $490,000+ $920,000)/$2,775,000] -89.73%