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MyPhone, Inc. uses the product cost method of applying the cost-plus approach to product pricing. The costs of producing and selling 5,310 cell phones are
MyPhone, Inc. uses the product cost method of applying the cost-plus approach to product pricing. The costs of producing and selling 5,310 cell phones are as follows: Variable costs per unit: Fixed costs: Direct materials $69 Factory overhead $198,100 Direct labor 31 Selling and administrative expenses 71,900 Factory overhead 26 Selling and administrative expenses 21 Total variable cost per unit $147 MyPhone desires a profit equal to a 13% rate of return on invested assets of $598,600. a. Determine the amount of desired profit from the production and sale of 5,310 cell phones. $ b. Determine the product cost per unit for the production of 5,310 of cell phones. Round your answer to the nearest whole dollar. $ 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. Total Cost $ per unit Markup per unit ho Selling price per unit
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