Product Cost Method of Product Costing

Voice Com, Inc. uses the product cost method of applying the cost$-$plus approach to product pricing. The costs of producing and selling $5,490$ cell phones are as follows:

Variable costs per unit:

Fixed costs:

Factory overhead

$$201,200$

Selling and administrative expenses

$68,200$

Voice Com desires a profit equal to a $14\%$ return on invested assets of $$600,000.$

a$.$ Determine the amount of desired profit from the production and sale of $5,490$ cell phones.

$

b$.$ Determine the product cost per unit for the production of $5,490$ 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

$

per unit

Markup