Voice Com, Inc., produces and sells cellular phones. The costs of producing and selling 4,500 units of cellular phones are as follows:

Variable costs:			Fixed costs:
Direct materials	$ 60	per unit	Factory overhead	$165,200
Direct labor	28		Selling and admin. exp.	58,000
Factory overhead	18
Selling and admin. exp.	14
Total	$120	per unit

Voice Com desires a profit equal to a 15% rate of return on invested assets of $420,000.

Assume that Voice Com, Inc., uses the variable cost concept of applying the cost-plus approach to product pricing.

Total variable costs	$540,000
Variable cost amount per unit	$120

A) Determine the variable cost makeup percentage for cellular phones

B) Determine the selling price of cellular phones. Round to the nearest cent.