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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 5,370 cell phones are as follows:

Line Item Description	Amount
Direct materials	$88
Direct labor	31
Factory overhead	24
Selling and administrative expenses	22
Total variable cost per unit	$165

Line Item Description	Amount
Factory overhead	$201,700
Selling and administrative expenses	70,400

MyPhone desires a profit equal to a 14% return on invested assets of $599,200.

a. Determine the amount of desired profit from the production and sale of 5,370 cell phones. fill in the blank _____

b. Determine the product cost per unit for the production of 5,370 cell phones. Round your answer to the nearest whole dollar. fill in the blank _____ per unit

c. Determine the product cost markup percentage for cell phones. Round your answer to two decimal places. ______%

d. Determine the selling price of cell phones. Round your answers to the nearest whole dollar.

Line Item Description	Amount
Total Cost	$____per unit
Markup	_____per unit
Selling price	$_____per unit

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