1. 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: 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

2. 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. $128,500

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

Total manufacturing costs $850,000

Cost amount per unit $17

c. Determine the markup percentage for Product K. %

d. Determine the selling price of Product K. Round your answer to two decimal places. $21.25.

Can you assist with C - Determine the markup percentage for Product K?