1. Question Content Area

   Product Cost Method of Product Costing

   MyPhone, Inc. uses the product cost method of applying the cost-plus approach to product pricing. The costs of producing and selling 5,210 cell phones are as follows:

   Variable costs per unit:						Fixed costs:
   	Direct materials		$77				Factory overhead	$199,200
   	Direct labor		31				Selling and administrative expenses	68,100
   	Factory overhead		23
   	Selling and administrative expenses		20
   		Total variable cost per unit	$151

   MyPhone desires a profit equal to a 14% rate of return on invested assets of $600,200.

   a. Determine the amount of desired profit from the production and sale of 5,210 cell phones. $fill in the blank 1

   b. Determine the product cost per unit for the production of 5,210 of cell phones. Round your answer to the nearest whole dollar. $fill in the blank 2 per unit

   c. Determine the product cost markup percentage for cell phones. Round your answer to two decimal places. fill in the blank 3 %

   d. Determine the selling price of cell phones. Round your answers to the nearest whole dollar.

   Total Cost	$fill in the blank 4per unit
   Markup	fill in the blank 5per unit
   Selling price	$fill in the blank 6per unit