Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Voice Com, Inc., uses the product cost method of applying the cost-plus approach to product pricing. The costs of producing and selling 5,100 units of

image text in transcribed
Voice Com, Inc., uses the product cost method of applying the cost-plus approach to product pricing. The costs of producing and selling 5,100 units of cell phones are as follows: Variable costs: Fixed costs: Direct materials $87 per unit Factory overhead $201,200 Direct labor 33 Selling and admin. exp. 68,000 Factory overhead 24 Selling and admin. exp. 18 Total variable cost per unit $162 per unit Voice Com desires a profit equal to a 15% rate of return on invested assets of $600,700. a. Determine the amount of desired profit from the production and sale of 5,100 units of cell phones. b. Determine the product cost per unit for the production of 5,100 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 per unit Markup per unit Selling price per unit

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting Principles

Authors: Jerry J Weygandt

10th Edition

1118009282, 9781118009284

More Books

Students also viewed these Accounting questions

Question

Technology

Answered: 1 week ago

Question

Population

Answered: 1 week ago

Question

The feeling of boredom.

Answered: 1 week ago