RooPhone Inc. uses the product cost concept of applying thecost-plus approach to product pricing. The costs of producing andselling 5,000 units of cellular phones are as follows: (7 points)Variable costs Fixed Costs: Direct materials $625,000 Factoryoverhead $215,000 Direct labor 225,000 Selling & Admin.expenses 75,000 Factory Overhead 200,000 Selling & admin. Exp.150,000 $1,200,000 RooPhone desires a profit equal to a 18% rate ofreturn on invested assets of $550,000. Required: a.) Determine theamount of desired profit. b.) Determine the product cost per unitfor the production of 5,000 phones. c.) Determine the total costmarkup percentage (e.g. 20%) using the product cost concept. d.)Determine the selling price of each cellular phone. Round tonearest dollar.
RooPhone Inc. uses the product cost concept of applying thecost-plus approach to product pricing. The costs of producing andselling 5,000 units of cellular phones are as follows: (7 points)Variable costs Fixed Costs: Direct materials $625,000 Factoryoverhead $215,000 Direct labor 225,000 Selling & Admin.expenses 75,000 Factory Overhead 200,000 Selling & admin. Exp.150,000 $1,200,000 RooPhone desires a profit equal to a 18% rate ofreturn on invested assets of $550,000. Required: a.) Determine theamount of desired profit. b.) Determine the product cost per unitfor the production of 5,000 phones. c.) Determine the total costmarkup percentage (e.g. 20%) using the product cost concept. d.)Determine the selling price of each cellular phone. Round tonearest dollar.
Related questions
| Product Cost Concept of Product Costing MyPhone, Inc., uses the product cost concept of applying thecost-plus approach to product pricing. The costs of producing andselling 4,690 units of cellular phones are as follows:
MyPhone desires a profit equal to a 14% rate of return oninvested assets of $600,900. a. Determine the amount of desired profit fromthe production and sale of 4,690 units of cellular phones. b. Determine the cost amount per unit for theproduction of 4,690 units of cellular phones. If required, roundyour answer to nearest dollar. c. Determine the product cost markup percentage(rounded to two decimal places) for cellular phones. d. Determine the selling price of cellularphones. Round to the nearest dollar.
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| Product Cost Concept of Product Costing MyPhone, Inc., uses the product cost concept of applying thecost-plus approach to product pricing. The costs of producing andselling 4,740 units of cellular phones are as follows:
MyPhone desires a profit equal to a 16% rate of return oninvested assets of $601,000. a. Determine the amount of desired profit fromthe production and sale of 4,740 units of cellular phones. b. Determine the cost amount per unit for theproduction of 4,740 units of cellular phones. If required, roundyour answer to nearest dollar. c. Determine the product cost markup percentage(rounded to two decimal places) for cellular phones. d. Determine the selling price of cellularphones. Round to the nearest dollar.
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