The Following Costs Relate to Southside Company: Variable Manufacturing Cost

Multiple Choice

The following costs relate to Southside Company: Variable manufacturing cost, $30; variable selling and administrative cost, $8; applied fixed manufacturing overhead, $15; and allocated fixed selling and administrative cost, $4. If Southside uses absorption manufacturing-cost pricing formulas, the company's markup percentage would be computed on the basis of:

A) $30.
B) $38.
C) $45.
D) $57.
E) none of the other answers are correct.