Wilde Corporation Budgeted the Following Costs for the Production of Its

Wilde Corporation budgeted the following costs for the production of its one and only product for the next fiscal year:
$\begin{array}{ll}\text { Direct materials } & \$ 1,140,000 \\\text { Direct labor } & 795,000 \\\text { Manufacturing overhead } & \\\text { Variable } & 840,000 \\\quad \text { Fixed } & 700,000 \\\text { Selling and administrative } & \\\quad \text { Variable } & 360,000 \\\quad \text { Fixed } & \underline{\$ 30,000} \\\text { Total costs } & \underline{\$ 4,365,000}\end{array}$
Wilde has an annual target operating income of $920,000.
The markup percentage for setting prices as a percentage of the variable cost of the product is ________.

A) 46.3%
B) 39.2%
C) 27.5%
D) 68.6%