Variable Cost Concept of Product Pricing Smart Stream Inc. uses the variable 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 $350,000 Factory overhead Selling and admin. exp. Direct labor 140,000 Factory overhead Selling and administrative expenses Total $240 Smart Stream desires a profit equal to a 30% rate of return on invested assets of $1,200,000. a. Determine the variable costs and the variable cost amount per unit for the production and sale of 10,000 cellular phones. Total variable costs Variable cost amount per unit b. Determine the variable cost markup percentage for cellular phones. Round to two decimal places. c. Determine the selling price of cellular phones. If required round to the nearest dollar. $ per phone Total Cost Concept of Product Pricing Voice Com, Inc., produces and sells cellular phones. The costs of producing and selling 5,500 units of cellular phones are as follows: Variable costs: Direct materials $ 73 per unit Fixed costs: Factory overhead Selling and admin. exp. $203,500 71,500 Direct labor Factory overhead Selling and admin. exp. Total $146 per unit Voice Com desires a profit equal to a 14% rate of return on invested assets of $646,800. 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 5,500 units of cellular phones. Round the cost per unit to two decimal places. 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 cent. $ per phone