Total Cost Method of Product Pricing Smart Stream Inc. uses the total cost method of applying the cost-plus approach to product pricing. The costs of producing and selling 9,000 units of cell phones are as follows: Variable costs per unit: Fixed costs: Direct materials $ 82 Factory overhead $373,000 Direct labor 38 Selling and administrative expenses 131,000 Factory overhead 25 Selling and administrative expenses 19 Total variable cost per unit $164 Smart Stream desires a profit equal to a 15% return on invested assets of $1,188,000. 

Determine the total costs and the total cost amount per unit for the production and sale of 9,000 cellular phones. Round the cost per unit to two decimal places.

Answer rating: 100% (QA)

Total cost Total variable cost Total fixed cost Total cost 164 x 9000 373000 131000 Total cost ... View the full answer