=+Sirrus Phone Company uses the total cost concept of applying the cost-plus approach to product pricing. The costs of producing and selling 3,500 units ofmobile phones are as follows:

Variable costs:

Direct materials $130.00 per unit Direct labor 50.00 Factory overhead 35.00 Selling and adm. exp. 25.00 Total $240.00 per unit Fixed costs:

Factory overhead $ 175,000 Selling and adm. exp. 70,000