3) Serena Company has budgeted the following costs for the production of its only product:

Direct Materials $35,000

Direct Labor 25,000

Variable indirect production costs 30,000

Fixed indirect production costs 15,000

Variable selling and administrative costs 7,500

Fixed selling and administrative costs 12,500

Total Costs $125,000

Revenue is $200,000

Serena Company has a target profit of $50,000. What is the average target markup percentage for setting prices as a percentage of variable manufacturing costs? calculate the operating income using contribution and absorption methods

A) 69%

B) 158%

C) 24%

D) 94%