22. Variable Cost Method of Product Pricing

Variable Cost Method of Product Pricing Smart Stream Inc. uses the variable cost method of applying the cost-plus approach to product pricing. The costs of producing and salling 10,000 cell phones are as follows: Smart Stream desires a profit equal to a 30% return on investad assets of $1,200,000. a. Determine the variabte costs and the voriablo cost amount per unit for the production and sale of 10,000 cellular phones. b. Determine the variable cost markup percentage for cellular phones. Round to two decimal places. \%i. c. Determine the selling price of cellular phones. If required, round to the nearest dollar. s per cellular phone