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MyPhone, Inc., uses the product cost concept of applying the cost-plus approach to product pricing. The costs of producing and selling 5,360 units of cellular

MyPhone, Inc., uses the product cost concept of applying the cost-plus approach to product pricing. The costs of producing and selling 5,360 units of cellular phones are as follows:

Variable costs: Fixed costs:
Direct materials $88 per unit Factory overhead $198,900
Direct labor 34 Selling and admin. exp. 71,100
Factory overhead 28
Selling and admin. exp. 21
Total $171 per unit

MyPhone desires a profit equal to a 14% rate of return on invested assets of $598,400.

a. Determine the amount of desired profit from the production and sale of 5,360 units of cellular phones. $

b. Determine the cost amount per unit for the production of 5,360 units of cellular phones. If required, round your answer to nearest dollar. $ per unit

c. Determine the product cost markup percentage (rounded to two decimal places) for cellular phones. %

d. Determine the selling price of cellular phones. Round to the nearest dollar.

Cost $per unit
Markup $per unit
Selling price $per unit

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