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 1,125,000
direct labor 780,000
manufacturing overhead
variable 840,000
fixed 645,000
selling/administrative
variable 360,000
fixed 480,000
total 4,230,000
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%
The markup percentage for setting prices as a percentage of variable manufacturing costs is:
A) 54%
B) 87%
C) 169%
D) 122%
The markup percentage for setting prices as a percentage of the variable cost of the product is:
A) 328%
B) 36%
C) 228%
D) 65%