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Zach Company has predicted the following costs for this year for 100,000 units: Manufacturing Selling and Administrative Variable $100,000 $ 25,000 Fixed 300,000 150,000 Total
Zach Company has predicted the following costs for this year for 100,000 units:
|
| Manufacturing | Selling and Administrative |
| Variable | $100,000 | $ 25,000 |
| Fixed | 300,000 | 150,000 |
| Total | $400,000 | $175,000 |
What is the markup on variable costs needed to achieve a target profit of $35,000?
| A. | 440 percent | |
| B. | 430 percent | |
| C. | 200 percent | |
| D. | 388 percent |
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