A Determine the total cost and the total cost per unit for t

idm/takeAssignment/takeAssignmentMain.do?invoker-assignments&takeAssignmentSessionLocator-assignment-take;&inprogress-faise; eBook Calculator Print Item 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 10,000 cell phones are as follows: Variable costs per unit: Fixed costs: Direct materials Direct labor Factory overhead Factory overhead $150 25 40 Selling and administrative expenses 25 350,000 Selling and administrative expenses 140,000 Total variable cost per unit $240 Smart Stream desires a profit equal to a 30% return on invested assets of $1,200,000. a. Determine the total cost and the total cost amount per unit for the production and sale of 10,000 celllar phones. Total cost Total cost amount per unit b.Determine the total cost markup percentage (rounded to two decimal places) for cellular phones Incorrect 12.461 v 96 c. Determine the selling price of cellular phones. Round to the nearest dollar per cellular phone Feedback

Solution

Req a: Cost per unit of Production and sale of 10000 units Manufacturing cost Material (150*10000) 1500000 Labour oh (25*10000) 250000 Variable OH (40*10000) 400000 Fixed OH 350000 2500000 Selling and admin cost: Variable   (25*10000) 250000 Fixed OH 140000 390000 Total cost of production and sale 2890000 Units 10000 Cost per unit     289 Req b: Desired profit (1200,000*30%) 360000 Markup % required (360000/2890000) 12.46% Req c: Required selling price: Cost per unit 289 Add: markup 36 Selling price per unit 325