Hummingbird Company uses the product cost method of applying the cost-plus approach to product pricing....
90.2K
Verified Solution
Link Copied!
Question
Accounting
Hummingbird Company uses the product cost method of applying the cost-plus approach to product pricing. The costs and expenses of producing 25,000 units of Product K are as follows: $2.50 4.25 Variable costs per unit: Direct materials Direct labor Factory overhead Selling and administrative expenses Total 1.25 0.50 8.50 Fixed costs: Factory overhead $25,000 Selling and administrative expenses 17,000 Hummingbird desires a profit equal to a 5% return on invested assets of $642,500. 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 of 25,000 units of Product K. Total manufacturing costs $ Cost amount per unit $ c. Determine the markup percentage for Product K Round your answer to one decimal place. % d. Determine the selling price of Product K. Round your answer to two decimal places
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
