Shale Remodeling uses time and materials pricing. It is setting prices for next year using the following information: $ Labor rate, including fringe benefits Annual labor hours Annual materials purchase Materials purchasing, handling, and storage Overhead for depreciation, taxes, insurance, etc. Target profit margin for both labor and materials 75 per hour 6,350 hours $1,206,250 $ 241,250 $ 670,000 25 % What should Shale set as the materials markup per dollar of materials used? 25%. 45%