Williams Industries Budgeted the Following Costs for the Production of Its

question 12

Multiple Choice

Williams Industries budgeted the following costs for the production of its only product, tennis balls, for the next fiscal year: $$\begin{array} { l r } \text { Materials } & \$ 35,000 \\\text { Labor } & 25,000 \\\text { Overhead: } & \\\text { Variable } & 30,000 \\\text { Fixed } & 15,000 \\\text { Selling and administrative: } & \\\text { Variable } & 7,500 \\\text { Fixed } & \underline { 12,500 } \\\text { Total costs } & \$ 125,000\end{array}$$ Williams Industries has a target profit of $50,000.The average target markup for setting prices as a percentage of total costs would be _____.

• A)68%
• B)47%
• C)19%
• D)40%

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