Answer the Following Questions Using the Information Below:
Bondi Corporation

question 76

Multiple Choice

Answer the following questions using the information below:
Bondi Corporation budgeted the following costs for the production of its unicycle for 2017.
$$\begin{array} { l r } \text { Direct materials } & \$ 562500 \\\text { Direct labour } & 390000 \\\text { Manufacturing overhead } & \\\text { Variable } & 420000 \\\text { Fixed } & 322500 \\\text { Selling and administrative } & \\\text { Variable } & 180000 \\\text { Fixed } & \underline{ 240000} \\\text { Total costs } & \underline{ \$ 2115000}\end{array}$$ Bondi has an annual target operating profit of $450 000.
-The mark-up percentage for setting prices as a percentage of variable manufacturing costs is:

• A)122%
• B)87%
• C)169%
• D)54%

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