Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Smart Stream Inc. uses the product cost concept of applying the cost-plus approach to product pricing. The costs of producing and selling 4,520 cellular phones

image text in transcribed

Smart Stream Inc. uses the product cost concept of applying the cost-plus approach to product pricing. The costs of producing and selling 4,520 cellular phones are as follows: Variable costs: Fixed costs: Direct materials $77 Factory overhead $200,500 Direct labor 40 Selling and administrative expenses 69,900 Factory overhead 28 Selling and administrative expenses 20 Total $165 Smart Stream wants a profit equal to a 16% rate of return on invested assets of $598,700. a. Determine the amount of desired profit from the production and sale of 4,520 cellular phones. $ 95,792 b. Determine the product cost and the cost amount per unit for the production of 4,520 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 $ 246 per unit

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Petroleum Accounting Principles Procedures And Issues

Authors: Dennis Jennings, Joe Feiten, Horace Brock

5th Edition

0940966255, 978-0940966253

More Books

Students also viewed these Accounting questions

Question

Describe the linkages between HRM and strategy formulation. page 80

Answered: 1 week ago