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

Direct materials	$215,000
Direct labour	115,000
Factory overhead:
Variable	80,000
Fixed	280,000
Selling and administrative:
Variable	85,000
Fixed	70,000
Total costs	$845,000

Patton has a target profit of $750,000. If total invested capital is $3,000,000, what is the company's target rate of return on investment?

Question 24Select one:

a.

30%

b.

35%

c.

15%

d.

25%

e.

20%