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:
Hummingbird desires a profit equal to a 5% rate of return on invested assets of $642,500.
Round your markup percentage to one decimal place, and other intermediate calculations and final answer to two decimal places.

Question

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:
   Hummingbird desires a profit equal to a 5% rate of return on invested assets of $642,500.
  Round your markup percentage to one decimal place, and other intermediate calculations and final answer to two decimal places.

Quizplus · Accepted Answer

The Answer of 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:
   Hummingbird desires a profit equal to a 5% rate of return on invested assets of $642,500.
  Round your markup percentage to one decimal place, and other intermediate calculations and final answer to two decimal places.

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