Week 13: Homework Total Cost Method of Product Pricing eBook Smart Stream Inc. uses the total cost method of applying the cost-plus approach to product pricing. The costs of producing and selling 10,000 units of cell phones are as follows: Variable costs per unit: Direct materials $150 25 Direct labor Factory overhead 40 Selling and administrative expenses 25 Total variable cost per unit $240 Fixed costs: Factory overhead $350,000 Selling and administrative expenses 140,000 Smart Stream desires a profit equal to a 30% return on invested assets of $1,200,000. a. Determine the total costs and the total cost amount per unit for the production and sale of 10,000 cell phones. Total cost Total cost amount per unit 2,400,000 X 240 X b. Determine the total cost markup percentage for cell phones. Round your answer to two decimal places. 85 X % EJ May 5