Answer the Following Questions Using the Information Below:
Wilde Corporation

question 133

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 full cost of the product is ________.

• A) 328.9%
• B) 36.6%
• C) 228.5%
• D) 21.3%

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Definitions:

Market Share

The percentage of an industry's total sales that is earned by a particular company over a specified time period.

Initial Price

The original cost or price of a good or service when it is first offered for sale, often used as a baseline for pricing strategies.

Contribution Margin

The amount remaining from sales revenue after variable costs have been deducted, used to cover fixed costs and contribute to profit.

Machine Hour

A unit of measure representing the operation of a machine for one hour, often used in cost accounting.