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n Show Me How eBook Voice Com, Inc. uses the product cost method of applying the cost-plus approach to product pricing. The costs of producing
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Show Me How eBook Voice Com, Inc. uses the product cost method of applying the cost-plus approach to product pricing. The costs of producing and selling 4,560 cell phones are as follows: Variable costs per unit: Fixed costs: Direct materials $82 Factory overhead $199,800 Direct labor 30 Selling and administrative expenses 69,900 Factory overhead 27 Selling and administrative expenses 21 Total variable cost per unit $160 Voice Com desires a profit equal to a 15% rate of return on invested assets of $601,900. a. Determine the amount of desired profit from the production and sale of 4,560 cell phones. 90,285 b. Determine the product cost per unit for the production of 4,560 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 Selling price per unit Step by Step Solution
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