Wilde Corporation budgeted the following costs for the production of its one and only product for the next fiscal year:

Wilde has an annual target operating income of $920,000.
The markup percentage for setting prices as a percentage of total manufacturing costs is ________.
A) 52.8%
B) 78.5%
C) 214.2%
D) 41.7%

Question

Wilde Corporation budgeted the following costs for the production of its one and only product for the next fiscal year:

Wilde has an annual target operating income of $920,000.
The markup percentage for setting prices as a percentage of total manufacturing costs is ________.
A) 52.8% 
B) 78.5% 
C) 214.2% 
D) 41.7%

Quizplus · Accepted Answer

Markup percentage = ($920,000 + $380,000 + $510,000) / ($1,125,000 + $775,000 + $850,000 + $680,000) = 52.8%

Wilde Corporation Budgeted the Following Costs for the Production of Its