Question
Voice Com, Inc. uses the product cost method of applying the cost-plus approach to product pricing. The costs of producing and selling 5,050 cell phones
Voice Com, Inc. uses the product cost method of applying the cost-plus approach to product pricing. The costs of producing and selling 5,050 cell phones are as follows: Variable costs per unit: Fixed costs: Direct materials $83 Factory overhead $199,000 Direct labor 30 Selling and administrative expenses 69,800 Factory overhead 25 Selling and administrative expenses 23 Total variable cost per unit $161 Voice Com desires a profit equal to a 13% rate of return on invested assets of $598,600. a. Determine the amount of desired profit from the production and sale of 5,050 cell phones. $ b. Determine the product cost per unit for the production of 5,050 of cell phones. Round your answer to the nearest whole dollar. $ per unit c. Determine the product cost markup percentage for cell phones. Round your answer to two decimal places. % d. Determine the selling price of cell phones. Round your answers to the nearest whole dollar. Total Cost $ per unit Markup per unit Selling price $ per unit
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