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Smart Stream Inc. uses the variable cost concept of applying the cost-plus approach to product...

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Accounting

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Smart Stream Inc. uses the variable cost concept of applying the cost-plus approach to product pricing. The costs of producing and selling 6,000 cellular phones are as follows: Variable costs: Fixed costs: Direct materials $ 65 Factory overhead $186,100 Direct labor 30 Selling and administrative expenses 65,450 Factory overhead 20 Selling and administrative expenses 15 Total $130 Smart Stream wants a profit equal to a 15% rate of return on invested assets of $455,000. a. Determine the variable costs and the variable cost amount per unit for the production and sale of 6,000 cellular phones. Total variable costs 780,000 $ Variable cost amount per unit 130 b. Determine the variable cost markup percentage for cellular phones. X % c. Determine the selling price of cellular phones. Round to the nearest cent. per cellular phone

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