Product Cost Method of Product Costing Smart Stream Inc. uses the product cost method of applying the cost-plus approach to product pricing. The costs of producing and selling 10,000 cell phones are as follows: Fixed costs: Variable costs per unit: Direct materials $150 $350,000 Factory overhead Selling and administrative expenses Direct labor 140,000 Factory overhead Selling and administrative expenses Total variable cost per unit $240 Smart Stream desires a profit equal to a 30% return on invested assets of $1,200,000. a. Determine the amount of desired profit from the production and sale of 10,000 cell phones, 8 369,000 V b. Determine the product cost per unit for the production of 10,000 units of cell phones. per unit c. Determine the product cost markup percentage for cell phones. d. Determine the selling price of cell phones. Round to the nearest dollar. Total Cost per unit Markup per unit Selling price 325 per unit eBook Show Me How Calculator Product Cost Method of Product Costing Smart Stream Inc. uses the product cost method of applying the cost-plus approach to product pricing. The costs of producing and selling 10,000 cell phones are as follows: Variable costs per unit: Fixed costs: Direct materials $150 Factory overhead $350,000 Direct labor Selling and administrative expenses 140,000 Factory overhead Selling and administrative expenses Total variable cost per unit $240 Smart Stream desires a profit equal to a 30% return on invested assets of $1,200,000. a. Determine the amount of desired profit from the production and sale of 10,000 cell phones. $360,000 b. Determine the product cost per unit for the production of 10,000 units of cell phones. $ 289 X per unit c. Determine the product cost markup percentage for cell phones. 12.5 X % d. Determine the selling price of cell phones. Round to the nearest dollar. Total Cost 289 X per unit Markup 36 325 X per unit per unit Selling price $