Answer the following questions using the information below: Oscar Corporation budgeted the following costs for the production of its one and only product for the next fiscal year:

Direct materials……………………………………………………………...............…11,25,000

Direct labor……………………………………………………………………..................7,80,000

Manufacturing overhead variable………………………………………….....…..8,40,000

Fixed…………………………………………………………………….......................…….6,45,000

Selling/administrative variable………………………………………………..........3,60,000

Fixed…………………………………………………………………….......................…….4,80,000

Total………………………………………………………………......................…………42,30,000

Oscar has an annual target operating income of $900,000.

The markup percentage for setting prices as a percentage of total manufacturing costs is:

A) 51%

B) 125%

C) 185%

D) 245%

Answer rating: 100% (QA)

Computation of the markup percentage for setting p... View the full answer