a. Determine the amount of desired profit from the production and sale of 5,440 cell phones. $fill in the blank 1 b. Determine the product cost per unit for the production of 5,440 of cell phones. Round your answer to the nearest whole dollar. $fill in the blank 2 per unit c. Determine the product cost markup percentage for cell phones. Round your answer to two decimal places. fill in the blank 3 % d. Determine the selling price of cell phones. Round your answers to the nearest whole dollar.
Product Cost Method of Product Costing
Voice Com, Inc. uses the product cost method of applying the cost-plus approach to product pricing. The costs of producing and selling 5,440 cell phones are as follows:
| Variable costs per unit: | Fixed costs: | ||||||
| Direct materials | $67 | Factory |
$199,800 | ||||
| Direct labor | 40 | Selling and administrative expenses | 69,600 | ||||
| Factory overhead | 22 | ||||||
| Selling and administrative expenses | 22 | ||||||
| Total variable cost per unit | $151 |
Voice Com desires a profit equal to a 13%
a. Determine the amount of desired profit from the production and sale of 5,440 cell phones.
$fill in the blank 1
b. Determine the product cost per unit for the production of 5,440 of cell phones. Round your answer to the nearest whole dollar.
$fill in the blank 2 per unit
c. Determine the product cost markup percentage for cell phones. Round your answer to two decimal places.
fill in the blank 3 %
d. Determine the selling price of cell phones. Round your answers to the nearest whole dollar.
| Total Cost | $fill in the blank 4per unit |
| Markup | fill in the blank 5per unit |
| Selling price | $fill in the blank 6per unit |
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