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Variable cost method of product pricing Smatt stream inc. uses the variable vost method of applying the cost - plus approach to product pricing. The
Variable cost method of product pricing
Smatt stream inc. uses the variable vost method of applying the costplus approach to product pricing. The cost of producing and selling cell phones are as follows:
Variable cost per unit
Direct materials
Direct labor
Factory overhead
Total variable cost per unit
Fixed cost
Factory overhead
Selling and administrative expenses
Smart stream desires a profit equal to a return on invested assets of
A Determine the variable cost and variable cost amount per unit for thr production and sale of cell phones.
Total bariable cost $
Cost amount per unit $
b Determine the variable cost markup percentage for cell phone. Round to two decimal places.
c Determine the selling price of cell phones. Of required, around to the nearest dollar.
Per cell phone
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