1. Question Content Area

   Magpie Corporation uses the total cost concept of product pricing. The cost information for the production and sale of 58,600 units of its sole product follows. Magpie desires a profit equal to a 22% rate of return on invested assets of 577,000.

   Fixed factory overhead cost	$38,500
   Fixed selling and administrative costs	7,300
   Variable direct materials cost per unit	5.03
   Variable direct labor cost per unit	1.88
   Variable factory overhead cost per unit	1.13
   Variable selling and administrative cost per unit	4.50

   The markup percentage on the total cost of the company's product is

   a.13.0%

   b.21.1%

   c.27.6%

   d.16.3%