Hummingbird Company uses the product cost method of applying the costplus approach to product pricing. The costs and expenses of producing units of Product K are as follows:
Variable costs per unit:
Line Item Description Amount
Direct materials $
Direct labor
Factory overhead
Selling and administrative expenses
Total
Fixed costs:
Line Item Description Amount
Factory overhead $
Selling and administrative expenses
Hummingbird desires a profit equal to a return on invested assets of $
a Determine the amount of desired profit from the production and sale of Product K
fill in the blank of $
b Determine the total manufacturing costs and the cost amount per unit for the production of units of Product K
Total manufacturing costs fill in the blank of $
Cost amount per unit fill in the blank of $
c Determine the markup percentage for Product K Round your answer to one decimal place.
fill in the blank of
d Determine the selling price of Product K Round your answer to two decimal places.
fill in the blank of $
