Total Cost Method of Product Pricing

Variable costs:

Direct materials

Direct labor

Factory overhead

Selling and administrative expenses

Total variable cost per unit

Fixed costs:

$$73$ per unit

Factory overhead

Selling and administrative expenses

$$129,500$

$34$

$22$

$17$

$$146$ per unit

Smart Stream desires a profit equal to a $16\%$ return on invested assets of $$351,570.$

Total cost

$

Total cost amount per unit

$

b$.$ Determine the total cost markup percentage $($rounded to two decimal places$)$ for cellular phones.

$\%$

c$.$ Determine the selling price of cellular phones. Round to the nearest cent.

$

per cellular phone