The Predicted 2017 Costs for Alpha Motors Are as Follows

The predicted 2017 costs for Alpha Motors are as follows:
$$\begin{array} { c } \underline{\text { Manufacturing Costs }} & \\\begin{array}{lcr}\text { Variable } && \$ 100,000 \\\text { Fixed } && 200,000\end{array}\end{array}\begin{array} { c } \underline{\text { Selling and Administrative Costs }}\\\begin{array}{lcr}\text { Variable } && \$ 300,000 \\\text { Fixed } && 150,000\end{array}\end{array}$$ Average total assets for 2017 are predicted to be $5,000,000.
If management desires a 6 percent rate of return on total assets, the markup percentages based on total variable costs would be:

A) 162.5 percent
B) 192.5 percent
C) 182.5 percent
D) 155.2 percent