Q18

Magpie Corporation uses the total cost concept of product pricing. Below is the cost information for the production and sale of 55,900 units of its sole product. Magpie desires a profit equal to a 24% rate of return on invested assets of $591,000. $39,500 Fixed factory overhead cost 7,000 Fixed selling and administrative costs 4.5 Variable direct materials cost per unit 1.88 Variable direct labor cost per unit 1.13 Variable factory overhead cost per unit 4.50 Variable selling and administrative cost per unit The markup percentage on total cost for the company's product is a. 25.7% Ob. 15.8% . 33.6% Od. 19.8%