idewater Company uses the product cost concept of applying the cost-plus approach to product pricing. The cost and expenses of producing and selling...
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idewater Company uses the product cost concept of applying the cost-plus

approach to product pricing. The cost and expenses of producing and selling 50,000 units of Product K are as follows:


Variable costs:

Direct materials $5.00

Direct labor 8.50

Factory overhead 2.50

Selling and administrative expenses 1.00


Total $17.00



Fixed costs:

Factory overhead $50,000

Selling and administrative expenses 34,000

Tidewater desires a profit equal to a 10% rate of return on invested assets of $1,285,000.


a. Determine the amount of desired profit from the production and sale of Product K.

$


b. Determine the total manufacturing costs and the cost amount per unit for the production and sale of 50,000 units of Product K.

  1. Total manufacturing costs$
  2. Cost amount per unit$


c. Determine the markup percentage for Product K.

$



d. Determine the selling price of Product K. Round your answer to two decimal places.

$

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