Hummingbird Company Uses the Product Cost Concept of Applying the Cost-Plus

question 172

Essay

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: $\begin{array}{lc}\text { Direct materials } & \$ 2.50 \\\text { Direct labor } & 4.25 \\\text { Factory overhead } & 1.25 \\\text { Selling and administrative expenses } & 0.50 \\\quad \text { Total } & \$ 8.50\\\text { Fixed costs: }\\\text { Factory overhead } & \$ 25,000 \\\text { Selling and administrative expenses } & 17,000\end{array}$ 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.
c) Determine the markup percentage for Product K.
d) Determine the selling price of Product K.
Round your markup percentage to one decimal place, and other intermediate calculations and final answer to two decimal places.

Recognize and describe various communication strategies and their applications in organizational settings.

Understand the role and significance of feedback in the communication process.

Comprehend the importance of choosing the appropriate medium for messages in effective communication.

Analyze the role of nonverbal communication in the context of interpersonal and organizational interactions.

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Definitions:

Brain Structure

The physical configuration and anatomical components of the brain, including various regions, lobes, and neural pathways.

Androgyny

A blend of both masculine and feminine characteristics or a state of gender ambiguity.

Society

A group of individuals involved in persistent social interaction, or a large social group sharing the same geographical or virtual territory.

Gender

The range of characteristics pertaining to, and differentiating between, masculinity and femininity, often influenced by social and cultural factors rather than biology alone.