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Total Cost Method of Product Pricing Smart Stream Inc. uses the total cost method of applying the cost-plus approach to product pricing. The costs of producing and selling 8,500 units of cell phones are as follows: Fixed costs: Variable costs: Direct materials. Direct labor Factory overhead Selling and administrative expenses Total variable cost per unit $186 per unit Smart Stream desires a profit equal to a 14% return on invested assets of $1,179,190. a. Determine the total cost and the total cost amount per unit for the production and sale of 8,500 units of cellular phones. Round the cost per unit to two decimal places. Total cost Total cost amount per unit b. Determine the total cost markup percentage (rounded to two decimal places) for cellular phones. % $93 per unit 43 28 22 Factory overhead Selling and administrative expenses c. Determine the selling price of cellular phones. Round to the nearest cent. $ per cellular phone. $396,300 139,200

Total Cost Method of Product Pricing Smart Stream Inc. uses the total cost method of applying the cost-plus approach to product pricing. The costs of producing and selling 8,500 units of cell phones are as follows: Fixed costs: Variable costs: Direct materials. Direct labor Factory overhead Selling and administrative expenses Total variable cost per unit $186 per unit Smart Stream desires a profit equal to a 14% return on invested assets of $1,179,190. a. Determine the total cost and the total cost amount per unit for the production and sale of 8,500 units of cellular phones. Round the cost per unit to two decimal places. Total cost Total cost amount per unit b. Determine the total cost markup percentage (rounded to two decimal places) for cellular phones. % $93 per unit 43 28 22 Factory overhead Selling and administrative expenses c. Determine the selling price of cellular phones. Round to the nearest cent. $ per cellular phone. $396,300 139,200

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Total Cost Method of Product Pricing Smart Stream Inc. uses the total cost method of applying the cost-plus approach to product pricing. The costs of producing and selling 8,500 units of cell phones are as follows: Variable costs: Fixed costs: Direct materials. Direct labor Factory overhead Selling and administrative expenses Total variable cost per unit $186 per unit Smart Stream desires a profit equal to a 14% return on invested assets of $1,179,190. a. Determine the total cost and the total cost amount per unit for the production and sale of 8,500 units of cellular phones. Round the cost per unit to two decimal places. Total cost Total cost amount per unit b. Determine the total cost markup percentage (rounded to two decimal places) for cellular phones. % $93 per unit 43 28 22 Factory overhead Selling and administrative expenses c. Determine the selling price of cellular phones. Round to the nearest cent. $ per cellular phone. $396,300 139,200
Transcribed Image Text:Total Cost Method of Product Pricing Smart Stream Inc. uses the total cost method of applying the cost-plus approach to product pricing. The costs of producing and selling 8,500 units of cell phones are as follows: Variable costs: Fixed costs: Direct materials. Direct labor Factory overhead Selling and administrative expenses Total variable cost per unit $186 per unit Smart Stream desires a profit equal to a 14% return on invested assets of $1,179,190. a. Determine the total cost and the total cost amount per unit for the production and sale of 8,500 units of cellular phones. Round the cost per unit to two decimal places. Total cost Total cost amount per unit b. Determine the total cost markup percentage (rounded to two decimal places) for cellular phones. % $93 per unit 43 28 22 Factory overhead Selling and administrative expenses c. Determine the selling price of cellular phones. Round to the nearest cent. $ per cellular phone. $396,300 139,200
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