Answered step by step
Verified Expert Solution
Question
...
1 Approved Answer
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
Step by Step Solution
There are 3 Steps involved in it
Step: 1
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-text-image.webp)
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Step: 3
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started