Question: Apple Inc. is planning to launch a new iPhone model. The estimated costs for the production of each unit are as follows: Direct Materials: $250

  • Apple Inc. is planning to launch a new iPhone model. The estimated costs for the production of each unit are as follows:
    • Direct Materials: $250
    • Direct Labor: $80
    • Variable Manufacturing Overhead: $40
    • Fixed Manufacturing Overhead: $5,000,000 per quarter
    • Sales and Administrative Expenses: $20,000,000 per quarter
    • If Apple expects to sell 2,000,000 units in the first quarter, calculate the total cost of production, the cost per unit, and determine the selling price per unit needed to achieve a 30% markup on total cost.

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