The Big Tool Company has budgeted sales of $300,000 with the following budgeted costs:

Direct materials $60,000

Direct manufacturing labor 35,000

Factory overhead

Variable 30,000

Fixed 45,000

Selling and administrative expenses

Variable 20,000

Fixed 25,000

Compute the average markup percentage for setting prices as a percentage of the full cost of the product.

Select one:

a. 106.8%

b. 45%

c. 39.5%

d. 60.9%