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Magpie Corporation uses the total cost method of product pricing. Below is...

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Accounting

Magpie Corporation uses the total cost method of product pricing. Below is cost information for the production and sale of 58,400 units of its sole product. Magpie desires a profit equal to a 25% return on invested assets of $550,000.
Line Item Description Amount
Fixed factory overhead cost $36,600
Fixed selling and administrative costs 8,000
Variable direct materials cost per unit 4.6
Variable direct labor cost per unit 1.88
Variable factory overhead cost per unit 1.13
Variable selling and administrative cost per unit 4.50
The markup percentage on total cost for Magpie's product is
a.31.1%
b.23.8%
c.14.6%
d.18.3%

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