Business, 06.08.2021 16:10 erbnichole
Voice Com, Inc., uses the product cost method of applying the cost-plus approach to product pricing. The costs of producing and selling 5,010 units of cell phones are as follows:
Variable costs: Fixed costs:
Direct materials $74 per unit Factory overhead $200,400
Direct labor 31 Selling and admin. exp. 69,000
Factory overhead 25
Selling and admin. exp. 21
Total variable cost per unit $151 per unit
Required:
a. Determine the amount of desired profit from the production and sale of 4,700 units of cell phones.
b. Determine the product cost per unit for the production of 4,700 of cell phones. If required, round your answer to nearest dollar.
c. Determine the product cost markup percentage (rounded to two decimal places) for cell phones.
Answers: 3
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Voice Com, Inc., uses the product cost method of applying the cost-plus approach to product pricing....
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