Voice Com, Inc., produces and sells cellular phones. The costs of producing and selling 8,000 units of cellular phones are as follows: Fixed costs: Variable costs: Direct materials Direct labor Factory overhead Selling and admin. exp. $ 77 per unit 35 23 19 Factory overhead Selling and admin. exp. Total $154 per unit Voice Com desires a profit equal to a 16% rate of return on invested assets of $782,800. Assume that Voice Com, Inc., uses the total cost concept of applying the cost-plus approach to product pricing. a. Determine the total costs and the total cost amount per unit for the production and sale of 8,000 units of cellular phones. Round the cost per unit to two decimal places. Total cost Cost amount per unit b. Determine the total cost markup percentage (rounded to two decimal places) for cellular phones. % 1,461,600 X $307,800 108,200

Voice Com, Inc., produces and sells cellular phones. The costs of producing and selling 8,000 units of cellular phones are as follows: Fixed costs: Variable costs: Direct materials Direct labor Factory overhead Selling and admin. exp. $ 77 per unit 35 23 19 Factory overhead Selling and admin. exp. Total $154 per unit Voice Com desires a profit equal to a 16% rate of return on invested assets of $782,800. Assume that Voice Com, Inc., uses the total cost concept of applying the cost-plus approach to product pricing. a. Determine the total costs and the total cost amount per unit for the production and sale of 8,000 units of cellular phones. Round the cost per unit to two decimal places. Total cost Cost amount per unit b. Determine the total cost markup percentage (rounded to two decimal places) for cellular phones. % 1,461,600 X $307,800 108,200

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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