Levimanufacturing makes profits with varying pricing structures, but it wants to determine the minimum markup percentage for all products based on manufacturing costs that will ensure that it does not fall below break-even point. It has estimated the following costs, for the coming year, for its planned production of all products.

Variable manufacturing costs

$1,000

Fixed manufacturing costs

500

Selling expenses

300

Administrative expenses

300

The markup percentage required for Levi Company to break even is:

Question 2 options:

A. 60.00%

B. 31.25%

C. 35.75%

D. 40.00%