Periwinkle Manufacturing Company has the following budgeted costs for 10,000 units:
|
|
Variable Costs
|
Fixed Costs
|
|
Manufacturing
|
$200,000
|
$ 75,000
|
|
Selling & Administrative
|
150,000
|
25,000
|
|
Total
|
$350,000
|
$100,000
|
What is the markup on variable costs needed to break even?
a. 33.3 percent
b. 300.0 percent
c. 28.6 percent
d. 150.4 percent