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MyPhone, Inc., uses the product cost method of applying the cost-plus approach to product pricing....

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Accounting

MyPhone, Inc., uses the product cost method of applying the cost-plus approach to product pricing. The costs of producing and selling 4,820 units of cell phones are as follows:

Variable costs: Fixed costs:
Direct materials $89 per unit Factory overhead $200,300
Direct labor 40 Selling and admin. exp. 71,600
Factory overhead 22
Selling and admin. exp. 20
Total variable cost per unit $171 per unit

MyPhone desires a profit equal to a 15% rate of return on invested assets of $599,200.

a. Determine the amount of desired profit from the production and sale of 4,820 units of cell phones. $

b. Determine the product cost per unit for the production of 4,820 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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