Farr Company Had the Following Information What Is the Markup Based on Prime Costs?
A)50

Farr Company had the following information: $\begin{array}{lrr}\text {Revenues}&&\$400,000\\\text {Cost of goods sold:}\\\text { Direct materrals } & \$ 100,000 \\\text { Direct labour } & 50,000 & \\\text { Overhead } & \underline{50,000 }& \underline{200,000} \\\text { Gross profit } & & \$ 200,000 \\\text { Selling and administrative expenses } & & \underline{75,000}{} \\\text { Operating income } & &\underline{ \$ 125,000}\end{array}$ What is the markup based on prime costs?

A) 50.0%
B) 133.3%
C) 166.7%
D) 300.0%