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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 5,260 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 5,260 units of cell phones are as follows: Variable costs: Fixed costs: Direct materials $81 per unit Factory overhead $201,400 Direct labor 30 Selling and admin. exp. 70,500 Factory overhead 24 Selling and admin. exp. 23 Total variable cost per unit $158 per unit Voice Com desires a profit equal to a 15% rate of return on invested assets of $598,700. a. Determine the amount of desired profit from the production and sale of 5,260 units of cell phones. 89,805 b. Determine the product cost per unit for the production of 5,260 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
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