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Product Cost Method of Product Costing MyPhone, Inc. uses the product cost method of applying the cost-plus approach to product pricing. The costs of producing and selling 5,190 cell phones are as follows: Variable costs per unit: Fixed costs: Direct materials $80 Factory overhead $198,100 Direct labor 39 Selling and administrative expenses 70,100 Factory overhead 24 Selling and administrative 22 expenses Total variable cost per unit $165 MyPhone desires a profit equal to a 13% rate of return on invested assets of $599,100. a. Determine the amount of desired profit from the production and sale of 5,190 cell phones. 77,883 b. Determine the product cost per unit for the production of 5,190 of cell phones. Round your answer to the nearest whole dollar. 217 X per unit c. Determine the product cost markup percentage for cell phones. Round your answer to two decimal places. 6.93 X % d. Determine the selling price of cell phones. Round your answers to the nearest whole dollar. Total Cost Markup 217 X per unit 15 X per unit Selling price 232 X per unit Feedback Check My Work a. Multiply the desired profit percentage by the desired amount (invested assets). b. Divide the total manufacturing (variable and fixed) costs by the number of units produced. c. Divide the desired profit plus the total selling and administrative expenses by the total manufacturing cost. d. Add cost (b) and markup [(c) x (b)]

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