Bombay Industries Budgeted the Following Costs for the Production of Its

Bombay Industries budgeted the following costs for the production of its only product, tennis balls, for the next fiscal year: $$\begin{array} { l r } \text { Materials } & \$ 35,000 \\\text { Labor } & 25,000 \\\text { Overhead: } & \\\text { Variable } & 30,000 \\\text { Fixed } & 15,000 \\\text { Selling and administrative: } & \\\text { Variable } & 7,500 \\\text { Fixed } & \underline { 12,500 } \\\text { Total costs } & \$ 125,000\end{array}$$ Bombay Industries has a target profit of $40,000.The average target markup for setting prices as a percentage of total production costs would be _____.

A) 158%
B) 32%
C) 68%
D) 57%