Voice Com, Inc., uses the product cost concept of applying the cost-plus approach to product pricing. The

Question:

Voice Com, Inc., uses the product cost concept of applying the cost-plus approach to product pricing. The costs of producing and selling 5,260 units of cellular phones are as follows: Variable costs: Fixed costs: Direct materials $62 per unit Factory overhead $200,600 Direct labor 35 Selling and admin. exp. 72,000 Factory overhead 25 Selling and admin. exp. 18 Total $140 per unit Voice Com desires a profit equal to a 15% rate of return on invested assets of $600,300.

a. Determine the amount of desired profit from the production and sale of 5,260 units of cellular phones. $

b. Determine the cost amount per unit for the production of 5,260 units of cellular phones. If required, round your answer to nearest dollar. $ per unit

c. Determine the product cost markup percentage (rounded to two decimal places) for cellular phones. %

d. Determine the selling price of cellular phones. Round to the nearest dollar. Cost $ per unit Markup $ per unit Selling price $ per unit

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Accounting

ISBN: 9780538475006

24th Edition

Authors: Carl S Warren, James M Reeve, Jonathan Duchac

Question Posted: