Question
Smart Stream Inc. uses the product cost concept of applying the cost-plus approach to product pricing. The costs of producing and selling 10,000 cellular phones
Smart Stream Inc. uses the product cost concept of applying the cost-plus approach to product pricing. The costs of producing and selling 10,000 cellular phones are as follows:
Smart Stream desires a profit equal to a 30% rate of return on invested assets of $1,200,000.
a. Determine the amount of desired profit from the production and sale of 10,000 cellular phones. $
b. Determine the cost per unit for the production of 10,000 units of cellular phones. $per unit
c. Determine the product cost markup percentage for cellular phones. %
d. Determine the selling price of cellular phones. Round to the nearest dollar.
Cost | $per unit |
Markup | $per unit |
Selling price | $per unit |
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