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Accounting Assignment
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:
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.
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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