50 PR 25-SA Product pricing using the cost-plus approach concepts; OBJ. 1,2 differential analysis for accepting additional business Crystal Displays Inc recently began production of a new product, flat panel displays, which required the investment of $1,500,000 in assets. The costs of producing and selling 5,000 units of flat panel displays are estimated as follows: Variable costs per unit: Fixed costs Direct materials $120 Factory overhead $250,000 Direct labor 30 Selling and administrative expenses 150,000 Factory overhead Selling and administrative expenses 35 Total Crystal Displays Inc. is currently considering establishing a selling price for flat panel dis- plays. The president of Crystal Displays has decided to use the cost-plus approach to product pricing and has indicated that the displays must earn a 15% rate of return on invested assets. Instructions 1. Determine the amount of desired profit from the production and sale of flat panel displays. 2. Assuming that the product cost concept is used, determine @ the cost amount per unit, (b) the markup percentage, and (c) the selling price of flat panel displays. $235