Smart Stream Inc. uses the product cost concept of applying the cost-plus approach to product pricing. The costs of producing and selling 5,090 cellular phones are as follows:

Variable costs:						Fixed costs:
	Direct materials		$74				Factory overhead	$201,300
	Direct labor		32				Selling and administrative expenses	69,400
	Factory overhead		26
	Selling and administrative expenses		22
		Total	$154

Smart Stream wants a profit equal to a 14% rate of return on invested assets of $601,000.

a. Determine the amount of desired profit from the production and sale of 5,090 cellular phones. $

b. Determine the product cost and the cost amount per unit for the production of 5,090 cellular phones. If required, round your answer to nearest dollar. $ per unit

c. Determine the product cost markup percentage for cellular phones. Rounded to two decimal places. %

d. Determine the selling price of cellular phones. Round to the nearest dollar.

Cost	$	per unit
Markup
Selling price	$	per unit