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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 cost-plus approach to product pricing. The cost of producing and selling 10,000 cell phones are as follows:
Variable cost per unit 150
Direct materials 25
Direct labor 40
Factory overhead 25
Total variable cost per unit 240
Fixed cost
Factory overhead 350,000
Selling and administrative expenses 140,000
Smart stream desires a profit equal to a 30% return on invested assets of 1,200,000
A. Determine the variable cost and variable cost amount per unit for thr production and sale of 10,000 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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