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 $5,360$ units of cell phones are as follows:

MyPhone desires a profit equal to a $14\%$ rate of return on invested assets of $$601,300.$

a$.$ Determine the amount of desired profit from the production and sale of $5,360$ units of cell phones.

$

b$.$ Determine the product cost per unit for the production of $5,360$ 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.

$\%$

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

Total Cost

uarr

per unit

Markup

per unit

Selling price

$

per unit