Hummingbird Company uses the product cost concept of applying the cost-plus approach to product pricing. The costs and expenses of producing 25,000 units of Product K are as follows:

Variable costs:
Direct materials		$2.50
Direct labor		4.25
Factory overhead		1.25
Selling and administrative expenses		0.50
Total		8.50
Fixed costs:
Factory overhead		$25,000
Selling and administrative expenses		17,000

Hummingbird desires a profit equal to a 5% rate of 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. $_________