Steeze Co. makes snowboards and uses the total cost approach in setting product prices. Its costs for producing 20,000 units follow. The company targets a profit of $700,000 on this product. Variable costs per Unit Direct materials $ 125 Direct labor 40 Overhead 30 Selling 8 Fixed Costs Overhead $492,000 Selling 128,000 Administrative 320,000 1. Compute the total cost per unit. 2. Compute the markup percentage on total cost. (Round your final percentage answer to 1 decimal place.) 3. Compute the product's selling price using the total cost method. (Round your intermediate calculations and final answer to the nearest whole dollar amount.) A 1 Total cost per unit 2. Markup percentage 3. Selling price Signal mistakenly produced 1.450 defective cell phones. The phones cost $62 each to produce. A salvage company will buy the defective phones as they are for $39 each. It would cost Signal $82 per phone to rework the phones. If the phones are reworked, Signal could sell them for $146 each. Signal has excess capacity. Should Signal scrap or rework the phones? Scrap Rework Sales Rework costs Income Holmes Company produces a product that can be either sold as is or processed further. Holmes has already spent $50,000 to produce 1.700 units that can be sold now for $67,500 to another manufacturer. Alternatively, Holmes can process the units further at an incremental cost of $295 per unit. If Holmes processes further, the units can be sold for $435 each. Should Holmes sell the product now or process it further? Sell as is Process Further Incremental Amount Sales Additional processing costs Income (loss) The company should