32

Wilde Corporation budgeted the following costs for the production of its one and only product for the next fiscal year: Direct materials $1,150,000 Direct labor 785,000 Manufacturing overhead Variable 870,000 Fixed 670,000 Selling and administrative Variable 370,000 Fixed 490,000 Total costs $4,335,000 Wilde has an annual target operating income of $910,000. The markup percentage for setting prices as a percentage of the variable cost of the product is A. 65.2% B. 44.1% C. 26.7% OD. 36.5%