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Voice Com, Inc., uses the product cost method of applying the cost-plus approach to product pricing. The costs of producing and selling 4,770 units of
Voice Com, Inc., uses the product cost method of applying the cost-plus approach to product pricing. The costs of producing and selling 4,770 units of cell phones are as follows: Variable costs: Fixed costs: Direct materials Direct labor Factory overhead Selling and admin. exp. $90 per unit Factory overhead $200,000 34 Selling and admin. exp. 71.300 24 20 Total variable cost per unit $168 per unit Voice Com desires a profit equal to a 13% rate of return on invested assets of $601,000. a. Determine the amount of desired profit from the production and sale of 4,770 units of cell phones. 78,130 b. Determine the product cost per unit for the production of 4,770 of cell phones. If required, round your answer to nearest dollar 190 per unit c. Determine the product cost markup percentage (rounded to two decimal places) for cell phones. 30 X % d. Determine the selling price of cell phones. Round to the nearest dollar. Total Cost 190 per unit 58 X per unit Selling price per unit Markup
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