Based on the data presented in Exercise assume that Smart Stream Inc. uses the variable cost concept of applying the cost- plus approach to product pricing.

In Exercise, Smart Stream Inc. uses the product cost concept of applying the cost-plus approach to product pricing. The costs of producing and selling 10,000 cellular phones are as follows:

a. Determine the variable costs and the variable cost amount per unit for the production and sale of 10,000 cellular phones.
b. Determine the variable cost markup percentage (rounded to two decimal places) for cellular phones.
c. Determine the selling price of cellular phones. Round to the nearestdollar.

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Variable costs: Fixed costs Factory overhead Selling and admin. exp. Direct materials Direct labor Factory overhead Selling and admin. exp. $150 per unit $350,000 140,000 25 40 25 Total $240 per unit