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Williams Industries Budgeted the Following Costs for the Production of Its

Question 12

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Williams Industries budgeted the following costs for the production of its only product, tennis balls, for the next fiscal year:  Materials $35,000 Labor 25,000 Overhead:  Variable 30,000 Fixed 15,000 Selling and administrative:  Variable 7,500 Fixed 12,500‾ Total costs $125,000\begin{array} { l r } \text { Materials } & \$ 35,000 \\\text { Labor } & 25,000 \\\text { Overhead: } & \\\text { Variable } & 30,000 \\\text { Fixed } & 15,000 \\\text { Selling and administrative: } & \\\text { Variable } & 7,500 \\\text { Fixed } & \underline { 12,500 } \\\text { Total costs } & \$ 125,000\end{array} Williams Industries has a target profit of $50,000.The average target markup for setting prices as a percentage of total costs would be _____.


A) 68%
B) 47%
C) 19%
D) 40%

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