Based on the data presented in Exercise 24-17 assume that Voice Com, Inc., uses the total cost

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Based on the data presented in Exercise 24-17 assume that Voice Com, Inc., uses the total cost concept of applying the cost-plus approach to product pricing.
a. Determine the total costs and the total cost amount per unit for the production and sale of 5,000 units of cellular phones.
b. Determine the total cost markup percentage (rounded to two decimal places) for cellular phones.
c. Determine the selling price of cellular phones. Round to the nearest dollar.


Data from Exercise 24-17:

Voice Com, Inc., uses the product 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:

Variable costs: Direct materials Direct labor Factory overhead Selling and admin. exp. Total Fixed costs: Factory overhe

Voice Com desires a profit equal to a 15% rate of return on invested assets of $600,000.

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Financial and Managerial Accounting Using Excel for Success

ISBN: 978-1111993979

1st edition

Authors: James Reeve, Carl S. Warren, Jonathan Duchac

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