Reference no: EM132607899

Tidewater 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 are:

Direct materials-$5.00

Direct labor-8.50

Factory overhead-2.50

Selling and administrative expenses-1.00

Total- $17.00

Fixed costs are:

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.

Question 1: Determine the amount of desired profit from the production and sale of Product K.

Question 2: Determine the total manufacturing costs and the cost amount per unit for the production and sale of 50,000 units of Product K.

Question 3: Determine the markup percentage for Product K.

Question 4: Determine the selling price of Product K. Round your answer to two decimal places.