37 Product Cost Method of Product Costing MyPhone, Inc., uses the product cost method of applying the cost-plus approach to product pricing. The costs of producing and selling 5,100 units of cell phones are as follows: Variable costs: Fixed costs: Direct materials $71 per unit Factory overhead $198.000 Direct labor Selling and admin. exp. 69,400 Factory overhead Selling and admin. exp. 23 Total variable cost per unit $154 per unit My Phone desires a profit equal to a 14% rate of return on invested assets of $500,200. a. Determine the amount of desired profit from the production and sale of 5,100 units of cell phones, 84,028 23 S b. Determine the product cost per unit for the production of 5,100 of cell phones. If required, round your answer to nearest dollar. 206.43 X per unit c. Determine the product cost markup percentage (rounded to two decimal places) for cell phones. 16.48 X % d. Determine the selling price of cell phones. Round to the nearest dollar. Total Cost 239 X per unit Markup 16 X per unit 255 X per unit Selling price $ Feedback Check My Work a. Multiply the desired profit percentage by the desired amount invested assets). b. Divide the total manufacturing (variable and fixed) costs by the number of units produced c. Divide the desired profit plus the total selling and administrative expenses by the total manufacturing cost