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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 5,160 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 5,160 units of cell phones are as follows:

Variable costs: Fixed costs:
Direct materials $66 per unit Factory overhead $199,100
Direct labor 35 Selling and admin. exp. 71,400
Factory overhead 24
Selling and admin. exp. 22
Total variable cost per unit $147 per unit

Voice Com desires a profit equal to a 16% rate of return on invested assets of $598,400.

a. Determine the amount of desired profit from the production and sale of 5,160 units of cell phones. $

b. Determine the product cost per unit for the production of 5,160 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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