Patton Company budgeted the following costs for the production of its one and only product, bells, for the next fiscal year:

Direct materials

$205,000

Direct labour

125,000

Factory overhead:

Variable

70,000

Fixed

290,000

Selling and administrative:

Variable

75,000

Fixed

80,000

Total costs

$845,000

Patton has a target profit of $750,000.

20) What is the target profit percentage as a percentage of total manufacturing costs? (2 MARKS)

21) If total invested capital is $3,000,000, what is the company's target rate of return on investment? (2 MARKS)

22) The target profit percentage for setting prices as a percentage of total variable costs would be (2 MARKS)

23) The target profit percentage for setting prices as a percentage of total costs would be (2 MARKS)