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 4,960 cell phones are as follows:

Variable costs per unit:						Fixed costs:
	Direct materials		$81				Factory overhead	$199,600
	Direct labor		40				Selling and administrative expenses	68,900
	Factory overhead		24
	Selling and administrative expenses		21
		Total variable cost per unit	$166

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

a. Determine the amount of desired profit from the production and sale of 4,960 cell phones. $fill in the blank 1

b. Determine the product cost per unit for the production of 4,960 of cell phones. Round your answer to the nearest whole dollar. $fill in the blank 2 per unit

c. Determine the product cost markup percentage for cell phones. Round your answer to two decimal places. fill in the blank 3 %

d. Determine the selling price of cell phones. Round your answers to the nearest whole dollar.

Total Cost	$fill in the blank 4per unit
Markup	fill in the blank 5per unit
Selling price	$fill in the blank 6per unit