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: Direct materials Direct labor Factory overhead Selling and administrative expenses Total variable cost per unit 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. $150 Total Cost 25 Markup 40 $ 25 Fixed costs: $240 b. Determine the product cost per unit for the production of 10,000 cell phones. per unit c. Determine the product cost markup percentage for cell phones. % Factory overhead Selling and administrative expenses d. Determine the selling price of cell phones. Round to the nearest dollar. X per unit X per unit $350,000 140,000

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 cel phones are as follows: 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. 3 b. Determine the product cost per unit for the production of 10,000 cell phones. 5 per unit c. Determine the product cost markup percentage for cell phones. of d. Determine the selling price of cell phones. Round to the nearest doliar. Totat Cost 5 x per unit Markop X per unit