Total Cost Concept of Product Pricing

Voice Com, Inc., produces and sells cellular phones. The costs of producing and selling 9,000 units of cellular phones are as follows:

Variable costs: Fixed costs: $379,600 Direct materials 84 per unit Factory overhead Direct labor Selling and admin. exp. 39 133,400 25 Factory overhead Selling and admin. exp. 20 $168 per unit Total Voice Com desires a profit equal to a 14% rate of return on invested assets of $1,243,930. Assume that Voice Com, Inc., uses the total cost concept of applying the cost-plus approach to product pricing a. Determine the total costs and the total cost amount per unit for the production and sale of 9,000 units of cellular phones. Round the cost per unit to two decimal places. Total cost 168 X 168 X Cost amount per unit b. Determine the total cost markup percentage rounded to two decimal places) for cellular phones 11.52 X c. Determine the selling price of cellular phones. Round to the nearest cent. 187 X per phone