Hordel Company needs to determine a markup for a new product. Hordel expects to sell 5,000 units and wants a target profit of $94 per unit. Additional information is as follows:

Variable Costs per Unit		Fixed Costs (total)
Direct materials	$ 25	Overhead	$ 51,360
Direct labor	46	General and administrative	40,360
Overhead	26
General and administrative	27

Using the variable cost method, what markup percentage to variable cost should be used?

Multiple Choice

74.1%

92.2%

88.1%

85.7%

90.6%