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Total Cost Concept of Product Pricing Smart Stream Inc. uses the total cost concept of applying the cost-plus approach to product pricing. The costs of

Total Cost Concept of Product Pricing Smart Stream Inc. uses the total cost concept of applying the cost-plus approach to product pricing. The costs of producing and selling 10,000 cellular phones are as follows:

Variable costs per unit: Fixed costs: Direct materials $150 Factory overhead $350,000 Direct labor 25 Selling and admin. exp. 140,000 Factory overhead 40 Selling and administrative expenses 25 Total $240 Smart Stream desires a profit equal to a 30% rate of return on invested assets of $1,200,000.

a.Determine the total costs and the total cost amount per unit for the production and sale of 10,000 cellular phones.

Total cost $

Cost amount per unit $

b.Determine the total cost markup percentage (rounded to two decimal places) for cellular phones.

%

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

image text in transcribed Total Cost Concept of Product Pricing Smart Stream Inc. uses the total cost concept of applying the cost-plus approach to product pricing. The costs of producing and selling 10,000 cellular phones are as follows: Variable costs per unit: Direct materials $150 Direct labor 25 Factory overhead 40 Selling and administrative expenses 25 Total $240 Fixed costs: Factory overhead $350,000 Selling and admin. exp. 140,000 Smart Stream desires a profit equal to a 30% rate of return on invested assets of $1,200,000. a. Determine the total costs and the total cost amount per unit for the production and sale of 10,000 cellular phones. Total cost Cost amount per unit $ $ b. Determine the total cost markup percentage (rounded to two decimal places) for cellular phones. % c. Determine the selling price of cellular phones. Round to the nearest dollar

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