1. Product Cost Concept of Product Costing

   MyPhone, Inc., uses the product cost concept of applying the cost-plus approach to product pricing. The costs of producing and selling 5,460 units of cellular phones are as follows:

   Variable costs:						Fixed costs:
   	Direct materials		$69	per unit			Factory overhead	$198,500
   	Direct labor		39				Selling and admin. exp.	69,500
   	Factory overhead		22
   	Selling and admin. exp.		20
   		Total	$150	per unit

   MyPhone desires a profit equal to a 14% rate of return on invested assets of $600,800.

   a. Determine the amount of desired profit from the production and sale of 5,460 units of cellular phones. $

   b. Determine the cost amount per unit for the production of 5,460 units of cellular phones. If required, round your answer to nearest dollar. $ per unit

   c. Determine the product cost markup percentage (rounded to two decimal places) for cellular phones. %

   d. Determine the selling price of cellular phones. Round to the nearest dollar.

   Cost	$per unit
   Markup	$per unit
   Selling price	$per unit