Pauley Company needs to determine a markup for a new product. Pauley expects to sell 24,000 units and wants a target profit of $18 per unit. Additional information is as follows:

Variable product cost per unit	$	18
Variable administrative cost per unit		13
Total fixed overhead		22,500
Total fixed administrative		29,100

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

Multiple Choice

• 53%

• 78%

• 64%

• 57%

• 65%