Q5. Bolin Inc. has budgeted sales of $150,000 with the following budgeted costs:

Direct materials $31,500

Direct labour 20,500

Factory overhead:

Variable 18,500

Fixed 28,000

Selling and administrative expenses:

Variable 12,000

Fixed 16,000

Required: Compute the target profit percentage for setting prices as a percentage of:

a. Total costs

b. Total variable costs

c. Variable manufacturing costs

d. Total manufacturing costs