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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 5,490 units of cell
MyPhone, Inc., uses the product cost method of applying the cost-plus approach to product pricing. The costs of producing and selling 5,490 units of cell phones are as follows: Variable costs: Fixed costs: Direct materials $90 per unit Factory overhead $201,800 Direct labor 39 Selling and admin. exp. 69,700 Factory overhead 22 Selling and admin. exp. 19 Total variable cost per unit $170 per unit MyPhone desires a profit equal to a 14% rate of return on invested assets of $598,700. a. Determine the amount of desired profit from the production and sale of 5,490 units of cell phones. $_ b. Determine the product cost per unit for the production of 5,490 of cell phones. If required, round your answer to nearest dollar. $_ per unit c. Determine the product cost markup percentage (rounded to two decimal places) for cell phones. % T d. Determine the selling price of cell phones. Round to the nearest dollar. Total Cost Markup Selling price $ $_ +
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