Use the information below to answer the following question(s).

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.

What is the target profit percentage as a percentage of total manufacturing costs?

Question content area bottom

Part 1

A.

92%

B.

227%

C.

208%

D.

122%

E.

109%