Required information

[The following information applies to the questions displayed below.]

The following is cost and production data for the Wave Darter:

Per unit

Variable manufacturing cost $ 400

Applied fixed manufacturing cost 230 *

Absorption manufacturing cost 630

Variable selling and administrative cost 56

Allocated fixed selling and administrative cost 150

Total cost $ 836

Variable manufacturing cost $ 400

Variable selling and administrative cost 56

Total variable cost $ 456

*Based on planned monthly production of 44 units (or 528 units per year).

Rounded

The target profit is $40,000, with planned sales equal to production

Use the general formula for determining a markup percentage to compute the required markup percentage using variable manufacturing cost.