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is CengageNOWv2lOnline ×Ye chegg study | Guided S/X -> d v2.cengagenow.com/ilrn/ta takeAssignmentMain.do?invoker= assignments&t; n Locator= assignment-take&inprogress-false; Chapter 10 Assignment how Me How Caladator Print tem Product Cost Method of Product Costing Voice Com. Inc. uses the product cost concept of applying the cost-plus approach to product pricing. The costs of producing and selling 4.850 units of cell phones are as follaws Variable costs Fixed coets Direct materiab Direct labor Factory overhead Selling and admin. exp $87 per uni Factory overhead 5200,900 40 Selling and admin. exp 69,100 19 Total variable cost per unt $163 per unit Voice Corm desires profit equal to 8 13% rate of return on invested essets of $601,400. a. Determine the amount of desired profit from the production and sale of 4,850 units of cel phones. b. Determine the product cost per unit for the production of 4,850 of cell phones. If reqed rund your answer to nearest dollar ) per unit c. Datermine the product cost markup percentage rounded to two decimal places) for cell phones d. Dotermine the selling price of call phones. Round to the nearest dollar Cost Markup Selling price per unit per unit Check My Work 2 more Cheok My Work uses remaining. Previous Next ssignment Score: 17.90% All work saved. save and Exit Submit Assignment for Grading 3-22 PM O Type here to search 12/12/2017Explanation / Answer
a. Desired profit = Invested assets × Rate of return = 601,400×13% = $78,182
b.
Product cost per unit = $223.67
c. Desired profit = Markup = $78,182
Product markup percentage = Markup ÷ Total costs = 78,182÷1,084,800 = 0.072 = 7.2%
d. Markup per unit = Markup ÷ Units produced and sold = 78,182÷4,850 = $16.12
Total variable cost per unit $168 × Units produced and sold 4,850 = Total variable costs $814,800 Add: Fixed costs: Factory overhead $200,900 Selling and admin. exp. 69,100 Total costs $1,084,800 ÷ Units produced and sold 4,850 = Product cost per unit $223.67Related Questions
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