Company P, uses the product cost method of applying the cost-plus approach to product pricing. The costs of producing and selling 5,490 units of cell phones are as follows: Variable costs:       Fixed costs:     Direct materials $90 per unit     Factory overhead $201,800   Direct labor 39       Selling and admin. exp. 69,700   Factory overhead 22           Selling and admin. exp. 19             Total variable cost per unit $170 per unit       Company p desires a profit equal to a 14% rate of return on invested assets of $598,700. Determine the amount of desired profit from the production and sale of 5,490 units of cell phones. $____ Determine the product cost per unit for the production of 5,490 of cell phones. If required, round your answer to nearest dollar. $______ per unit Determine the product cost markup percentage (rounded to two decimal places) for cell phones. _______ %

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Pricing

Pricing is used as a term in finance and economics, pricing is the process of fixing a value for a product or a service. Pricing establishes a value for a product or service that the customer has to pay. A business can choose from different strategies while deciding to set prices.