idewater 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

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.

$

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

1. Total manufacturing costs$
2. Cost amount per unit$

c.Determine the markup percentage for Product K.

$

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

$