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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 5,330 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 5,330 units of cell phones are as follows: Variable costs: Direct materials Direct labor Fixed costs: $74 per unit Factory overhead $200,900 40 Selling and admin. exp. 70,200 Factory overhead 28 Selling and admin, exp 22 Total vanable cost per unit $164 per unt Voice Com desires a profit equal to a 16% rate of return on invested assets of $599,800. a. Determine the amount of desired profit from the production and sale of 5,330 units of cell phones. b. Determine the product cost per unit for the production of 5,330 of cell phones. If required, round your answer to nearest dollar per unit c. Determine the product cost markup percentage (rounded to two decimal places) for cell phones. d. Determine the selling price of cell phones. Round to the nearest dollar, Total Cost Markup Selling price per unit per unit per unit
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