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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
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 4,840 cell phones are as follows: Variable costs per unit: Fixed costs: Direct materials $76 Factory overhead $199,800 Direct labor 34 Selling and administrative expenses 69,900 Factory overhead 22 Selling and administrative expenses 23 Total variable cost per unit $155 Voice Com desires a profit equal to a 16% rate of return on invested assets of $599,700. a. Determine the amount of desired profit from the production and sale of 4,840 cell phones. $ 95,952 b. Determine the product cost per unit for the production of 4,840 of cell phones. Round your answer to the nearest whole dollar. 210.68 X per unit c. Determine the product cost markup percentage for cell phones. Round your answer to two decimal places. 9.4 X % d. Determine the selling price of cell phones. Round your answers to the nearest whole dollar. Total Cost per unit Markup per unit Selling price per unit
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