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Business, 02.12.2019 19:20 PeachyPeaches1489

Variable cost method of product pricing smart stream inc. uses the variable cost method of applying the cost-plus approach to product pricing. the costs of producing and selling 10,000 cell phones are as follows: variable costs per unit: fixed costs: direct materials $150 factory overhead $350,000 direct labor 25 selling and admin. exp. 140,000 factory overhead 40 selling and administrative expenses 25 total variable cost per unit $240 smart stream desires a profit equal to a 30% return on invested assets of $1,200,000.
a. determine the variable costs and the variable cost amount per unit for the production and sale of 10,000 cellular phones. total variable cost $ variable cost amount per unit $
b. determine the variable cost markup percentage for cellular phones. round to two decimal places. %
c. determine the selling price of cellular phones. if required, round to the nearest dollar. $ per cellular phone

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