MyPhone Inc. uses the total cost concept of applying the cost-plus approach to product pricing. The costs of producing and selling 5,000 units of cellular phones are as follows:

MyPhone 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 cellular phones.(b) Determine the total costs and the cost amount per unit for the production and sale of 5,000 units of cellular phones.(c) Determine the total cost markup percentage (rounded to two decimal places) for cellular phones.(d) Determine the selling price of cellular phones. Round to the nearest dollar.

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Fixed costs: Factory overhead Selling and adm. exp. Variable costs: Direct materials Direct labor Factory overhead Selling and adm. exp. Total $125 per unit 45 40 30 $215,000 75,000 $240 per unit