Need help Voice Com, Inc., uses the product cost concept of applying the cost-plusapproach to product pricing. The costs of producing and selling 5,070 unitsof cell phones are as follows:Variable costs:Fixed costs:Direct materials$89 per unit Factory overhead$198,300Direct labor33Selling and admin.exp.71,800Factory overheadSelling and admin.2722exp.Total variable cost per$171 per unitunitVoice Com desires a profit equal to a 14% rate of return on invested assetsof $598,500.a. Determine the amount of desired profit from the production and sale of5,070 units of cell phones.b. Determine the product cost per unit for the production of 5,070 of cellphones. If required, round your answer to nearest dollar.c. Determine the product cost markup percentage (rounded to two decimalplaces) for cell phones.d. Determine the selling price of cell phones. Round to the nearest dollar.

Step 1: a) Desired profit = Invested assets * Rate of return = $598,500 x 14%= $83,790 Step 2: b)…

Answered: Voice Com, Inc., uses the product cost…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter2: Building Blocks Of Managerial Accounting

Section: Chapter Questions

Problem 5EB: Baxter Company has a relevant range of production between 15,000 and 30,000 units. The following...

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