DirectCall Company uses the total cost concept of applying the cost-plus approach to product pricing. The costs of producing and selling 4,000 units of mobile phones are as follows:

DirectCall Company desires a profit equal to a 25% rate of return on invested assets of $400,000.
a. Determine the amount of desired profit from the production and sale of mobile phones.
b. Determine the total costs and the cost amount per unit for the production and sale of 4,000 units of mobile phones.
c. Determine the markup percentage (rounded to two decimals) for mobile phones.
d. Determine the selling price of mobile phones. Round to the nearestdollar.

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Variable costs: Fixed costs: Direct materials Direct labor Factory overhead Selling and adm. exp $140.00 per unit Factory overhead Selling and adm. exp. $160,000 80,000 40.00 25.00 15.00 Total 220.00 per unit