Raphael Corporation Uses the Product Cost Concept of Product Pricing

Multiple Choice

Raphael Corporation uses the product cost concept of product pricing. Below is cost information for the production and sale of 50,000 units of its sole product. Raphael desires a profit equal to a 12% rate of return on invested assets of $1,000,000. $\begin{array}{ll}\$ 80,000.00 & \text { Fixed factory overhead cost } \\50,000.00 & \text { Fixed selling and administrative costs } \\5.00 & \text { Variable direct materials cost per urit } \\8.50 & \text { Variable direct labor cost per unit } \\2.50 & \text { Variable factory overhead cost per urit } \\1.00 & \text { Variable selling and admiristrative cost per urit }\end{array}$ Refer to the information provided for Raphael Corporation. The markup percentage for the company's product is:

A) 25%.
B) 12.2%.
C) 29%.
D) 20%.