Determine the amount of desired profit

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Reference no: EM132083199

Question: Voice Com, Inc., uses the product cost concept of applying the cost-plus approach to product pricing. The costs of producing and selling 5,360 units of cellular phones are as follows: Variable costs: Fixed costs: Direct materials $68 per unit Factory overhead $201,300 Direct labor 37 Selling and admin. exp. 69,300 Factory overhead 26 Selling and admin. exp. 19 Total $150 per unit Voice Com desires a profit equal to a 14% rate of return on invested assets of $600,200.

a. Determine the amount of desired profit from the production and sale of 5,360 units of cellular phones. $

b. Determine the cost amount per unit for the production of 5,360 units of cellular phones. If required, round your answer to nearest dollar. $ per unit

c. Determine the product cost markup percentage (rounded to two decimal places) for cellular phones. %

d. Determine the selling price of cellular phones. Round to the nearest dollar. Cost $ per unit Markup $ per unit Selling price $ per unit

Reference no: EM132083199

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