Smart Stream Inc. uses the product cost concept of applying the cost-plus approach to product pricing. The costs of producing and selling 5,050 cellular phones are as follows: Variable costs: Fixed costs: Direct materials $73 Factory overhead $201,200 Direct labor 33 Selling and administrative expenses 71,200 Factory overhead 23 Selling and administrative expenses 19 Total $148

Product Cost Concept of Product Costing Smart Stream Inc. uses the product cost concept of applying the cost-plus approach to product pricing. The costs of producing and selling 5,050 cellular phones are as follows: Variable costs: Fixed costs: Direct materials $73 Factory overhead $201,200 Direct labor 33 Selling and administrative expenses 71,200 Factory overhead 23 Selling and administrative expenses 19 Total $148 Smart Stream wants a profit equal to a 15% rate of return on invested assets of $600,500. a. Determine the amount of desired profit from the production and sale of 5,050 cellular phones. 96,080 b. Determine the product cost and the cost amount per unit for the production of 5,050 cellular phones. If required, round your answer to nearest dollar. 204 X per unit C. Determine the product cost markup percentage for cellular phones. Rounded to two decimal places. 9.33 X % d. Determine the selling price of cellular phones. Round to the nearest dollar. Cost 204 X per unit Markup 19 Selling price 223 X per unit Feedback Check My Work a. Multiply the desired profit percentage by the desired amount (invested assets). b. Divide the total manufacturing costs by the number of units produced. c. Divide the desired profit plus the selling and administrative expenses by the total manufacturing cost. d. Add cost (b) and markup [(c) x (b)]. Check My Work 1 more Check My Work uses remaining. All work saved