Consolidated Corporation Had the Following Information What Is the Markup Based on Materials?
A)71

Multiple Choice

Consolidated Corporation had the following information: $$\begin{array} { l r r } \text { Revenues } & & \$ 250,000 \\\text { Cost of goods sold: } & \\\quad \text { Direct materials } & \$ 50,000 & \\\quad \text { Direct labor } & 37,500 & \\\quad \text { Overhead } & 62,500 & 150,000 \\\text { Gross profit } & & \$ 100,000 \\\text { Selling and administrative expenses } & & 37,500 \\\text { Operating income } & \$ 62,500 \\\hline\end{array}$$
What is the markup based on materials?

A) 71.4%
B) 185.7%
C) 42.9%
D) 400.0%