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 variable costs?

Multiple Choice

• None of the answers is correct.

• 125%.

• 38%.

• 67%.

• 80%.