Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Sirrus Phone Company uses the total cost concept of applying the cost-plus approach to product pricing. The costs of producing and selling 3,500 units of
Sirrus Phone Company uses the total cost concept of applying the cost-plus approach to product pricing. The costs of producing and selling 3,500 units of mobile phones are as follows: variable costs fixed costs Direct materials $130.00 per unit Factory o/h $175,000 Direct labor 50.00 Selling/admin exp $ 70,000 Factory overhead 35.00 Selling/admin exp 25.00 Total $240.00 Sirrus desires a profit equal to a 30% rate of return on invested assets of $350,000 Assuming Sirrus Phone Company uses the product cost concept of applying the cost-plus approach to product pricing, a. Determine the total manufacturing costs and the cost amount per unit for the production and sale of 3,500 units of mobile phones. b.Determine the markup percentage(rounded to two decimal places)for mobile phones c.determine the selling price of mobile phones. Round to the nearest dollar
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started