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 5,100 cell phones are as follows:

Variable costs per unit:						Fixed costs:
	Direct materials		$69				Factory overhead	$201,900
	Direct labor		38				Selling and administrative expenses	69,200
	Factory overhead		24
	Selling and administrative expenses		18
		Total variable cost per unit	$149

MyPhone desires a profit equal to a 14% rate of return on invested assets of $598,100.

a. Determine the amount of desired profit from the production and sale of 5,100 cell phones. $

b. Determine the product cost per unit for the production of 5,100 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	$
Markup
Selling price	$