Hordel Company needs to determine a markup for a new product. Hordel expects to sell $5,000$ units and wants a target profit of $$108$ per unit. Additional information is as follows:

Variable Costs per Unit Fixed Costs $($total$)$

Direct materials $ $32$ Overhead $ $53,180$

Direct labor $53$ General and administrative $42,180$

Overhead $33$

General and administrative $34$

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

Multiple Choice