Product Cost Method of Product Costing MyPhone, Inc., uses the product cost method of applying the cost-plus approach to product pricing. The costs of producing and selling 5,280 units of cell phones are as follows: Variable costs: Direct labor Fixed costs: Direct materials $80 per unit Factory overhead $199,500 34 Selling and admin. exp. 68,500 26 19 $159 per unit Factory overhead Selling and admin. exp. Total variable cost per unit MyPhone desires a profit equal to a 14% rate of return on invested assets of $599,700. a. Determine the amount of desired profit from the production and sale of 5,280 units of cell phones. 83,958 b. Determine the product cost per unit for the production of 5,280 of cell phones. If required, round your answer to nearest dollar. 178 per unit c. Determine the product cost markup percentage (rounded to two decimal places) for cell phones. -27 X % d. Determine the selling price of cell phones. Round to the nearest dollar