Johanson Company Had the Following Information What Is the Markup Based on Prime Costs?
A)300

Multiple Choice

Johanson Company had the following information: $\begin{array}{lr}\text { Revenues }&&\$400,000\\\text { Cost of goods sold: }\\\text { Direct materials } & \$ 100,000 \\\text { Direct labor } & 50,000 \\\text { Overhead } & 50,000&\$200,000\\\text { Gross profit } && \$ 200,000 \\\text { Selling and administrative expenses } &&75,000 \\\text { Onerating income } && \$125,000\end{array}$ What is the markup based on prime costs?

A) 300.0%
B) 166.7%
C) 50.0%
D) 133.3%