Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Need help with this question. MyPhone, Inc. uses the product cost method of applying the cost-plus approach to product pricing. The costs of producing and

Need help with this question.

image text in transcribed
MyPhone, Inc. uses the product cost method of applying the cost-plus approach to product pricing. The costs of producing and selling 4,910 cell phones are as follows: Variable costs per unit: Fixed costs: Direct materials SHO Factory overhead $199,200 Direct labor 37 Selling and administrative expenses 70,000 Factory overhead 22 Selling and administrative expenses Total variable cost per unit $157 MyPhone desires a profit equal to a 13% rate of return on invested assets of $599,600. a. Determine the amount of desired profit from the production and sale of 4,910 cell phones, b. Determine the product cost per unit for the production of 4,910 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

There are 3 Steps involved in it

Step: 1

blur-text-image

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

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Intermediate Accounting

Authors: James D. Stice, Earl K. Stice, Fred Skousen

16th Edition

324376375, 0324375743I, 978-0324376371, 9780324375749, 978-0324312140

Students also viewed these Accounting questions