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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 5,340 cell
Voice Com, Inc. uses the product cost method of applying the cost-plus approach to product pricing. The costs of producing and selling 5,340 cell phones are as follows: Variable costs per unit: Direct materials Direct labor Fixed costs: $86 Factory overhead $200,100 39 Selling and administrative expenses 69,000 Factory overhead 27 Selling and administrative expenses 22 Total variable cost per unit $174 Voice Com desires a profit equal to a 14% rate of return on invested assets of $599,500. a. Determine the amount of desired profit from the production and sale of 5,340 cell phones. b. Determine the product cost per unit for the production of 5,340 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 Markup Selling price per unit per unit per unit
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