1. 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:

   Variable costs per unit:
   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% return on invested assets of $642,500.

   a. Determine the amount of desired profit from the production and sale of Product K. $fill in the blank 1

   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	$fill in the blank 2
   Cost amount per unit	$fill in the blank 3

   c. Determine the markup percentage for Product K. Round your answer to one decimal place. fill in the blank 4 %

   d. Determine the selling price of Product K. Round your answer to two decimal places. $fill in the blank 5