Question

1. MyPhone Inc. uses the product cost concept of applying the cost-plus approach to product pricing. The costs of producing and selling 4,890 cellular phones are as follows:

   Variable costs:						Fixed costs:
   	Direct materials		$70	per unit			Factory overhead	$199,200
   	Direct labor		35				Selling and administrative expenses	69,600
   	Factory overhead		28
   	Selling and administrative expenses		18
   		Total	$151	per unit

   MyPhone wants a profit equal to a 15% rate of return on invested assets of $598,800.

   a. Determine the amount of desired profit from the production and sale of 4,890 cellular phones.
   $

   b. Determine the product cost and the cost amount per unit for the production of 4,890 cellular phones. If required, round your answer to nearest dollar.
   $ per unit

   c. Determine the product cost markup percentage (rounded to two decimal places) for cellular phones.
   %

   d. Determine the selling price of cellular phones. Round to the nearest dollar.

   Cost	$	per unit
   An amount that is added to a cost amount to determine product price.Markup
   Selling price	$	per unit

   the one I asked already in the computer is not right, and I still don't understand.

Answer 1