• Apple Inc. is planning to launch a new iPhone model. The estimated costs for the production of each unit are as follows:
  • Direct Materials: $250
  • Direct Labor: $80
  • Variable Manufacturing Overhead: $40
  • Fixed Manufacturing Overhead: $5,000,000 per quarter
  • Sales and Administrative Expenses: $20,000,000 per quarter
  • If Apple expects to sell 2,000,000 units in the first quarter, calculate the total cost of production, the cost per unit, and determine the selling price per unit needed to achieve a 30% markup on total cost.