Answer the Following Questions Using the Information Below:
Wilde Corporation

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 variable manufacturing costs is ________.

A) 51.40%
B) 87.04%
C) 65.30%
D) 21.30%