=+MyPhone Inc. uses the total cost concept of applying the cost-plus approach to product pricing. The costs of producing and selling 5,000 units of cellular phones are as follows:

Variable costs: Fixed costs:

Direct materials $125 per unit Factory overhead $215,000 Direct labor 45 Selling and adm. exp. 75,000 Factory overhead 40 Selling and adm. exp. 30 _____ Total $240 per unit _____ _____ MyPhone desires a profit equal to a 25% rate of return on invested assets of $400,000.