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:

Smart Stream desires a profit equal to a 30% rate of return on invested assets of $ 1,200,000.
a. Determine the amount of desired profit from the production and sale of 10,000 cellular phones.
b. Determine the product cost and the cost amount per unit for the production of 10,000 cellular phones.
c. Determine the product cost markup percentage for cellular phones.
d. Determine the selling price of cellularphones.

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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