1. Multiple Products Co. has predicted the following costs for this year for 100,000 units:

	Manufacturing	Selling and Administrative
Variable	400,000	100,000
Fixed	600,000	300,000
Total	1,000,000	400,000

What is the markup on variable costs needed to achieve a target profit of 100,000?

1. 375 percent

2. 275 percent

3. 250 percent

4. 200 percent