Answer the Following Questions Using the Information Below:
Wilde Corporation

question 1

Multiple Choice

Answer the following questions using the information below:
Wilde Corporation budgeted the following costs for the production of its one and only product for the next fiscal year:
$\begin{array}{lr}\text { Direct materials } & \$ 1,125,000 \\\text { Direct labor } & 775,000 \\\text { Manufacturing overhead } & \\\quad \text { Variable } & 840,000 \\\quad \text { Fixed } & 645,000\\\text { Selling and administrative }\\\text { Variable } & 360,000 \\\text { Fixed } & 480,000 \\\text { Total costs } & \$ 4,225,000\end{array}$ Wilde has an annual target operating income of $900,000.
-The markup percentage for setting prices as a percentage of the variable cost of the product is ________.

• A) 328.9%
• B) 36.6%
• C) 228.5%
• D) 65.3%

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Definitions:

Optical Microscopes

Instruments that use visible light and a system of lenses to magnify small objects, allowing for the observation of details not visible to the naked eye.

Physicians' Office Laboratories

Labs located within a physician's office where various tests are performed on clinical specimens to obtain information about the health of a patient.

Objectives

The set of magnifying lenses contained in the nosepiece of a compound microscope.

Optical Microscope

An instrument that uses visible light and a system of lenses to magnify images of small subjects.