Softwind Manufacturing anticipates annual sales of 40,000 units and has the following information regarding one of its products: Annual unit sales 40,000 Fixed manufacturing costs $ 22 Variable manufacturing costs 44 Variable selling and administrative costs 16 Fixed selling and administrative costs 8 Desired profit per unit 18 What is the markup percentage used by Softwind if it uses cost-plus pricing based on total costs?

Multiple Choice

• 17%.

• 20%.

• 83%.

• 500%.

• None of the answers is correct.