Based on the data presented in Exercise 24-17 assume that Voice Com, Inc., uses the variable cost concept of applying the cost-plus approach to product pricing.
a. Determine the variable costs and the variable cost amount per unit for the production and sale of 5,000 units of cellular phones.
b. Determine the variable cost markup percentage 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:

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

Transcribed Image Text:

Variable costs: Direct materials Direct labor Factory overhead Selling and admin. exp. Total Fixed costs: Factory overhead Selling and admin. exp. $ 80 per unit 36 24 20 $160 per unit $200,000 70,000