1. 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 5,250 units of cell phones are as follows:

   Variable costs:						Fixed costs:
   	Direct materials		$89	per unit			Factory overhead	$200,400
   	Direct labor		30				Selling and admin. exp.	70,800
   	Factory overhead		26
   	Selling and admin. exp.		20
   		Total variable cost per unit	$165	per unit

   Voice Com desires a profit equal to a 16% rate of return on invested assets of $601,300.

   a. Determine the amount of desired profit from the production and sale of 5,250 units of cell phones. $

   b. Determine the product cost per unit for the production of 5,250 of cell phones. If required, round your answer to nearest dollar. $ per unit

   c. Determine the product cost markup percentage (rounded to two decimal places) 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	$per unit

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