Yelk Garage uses time and materials pricing. It is setting prices for next year using the following information: Labor rate, including fringe benefits$50per hourAnnual labor hours 3,350hoursAnnual materials purchases$825,000 Materials purchasing, handling, and storage$41,250 Overhead for depreciation, taxes, insurance, etc.$67,000 Target profit margin for both labor and materials 20% What should Yelk set as the materials markup per dollar of materials used?
A. 35%.
B. 20%.
C. 5%.
D. 25%.
E. 30%.
Answer: D
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