Product Cost Method of Product Costing Voice Com, Inc. uses the product cost method of applying the cost-plus approach to product pricing. The costs of producing and selling 4,530 cell phones are as follows: Variable costs per unit: Direct materials Direct labor Factory overhead Selling and administrative expenses Total variable cost per unit $61 39 28 18 $146 Fixed costs: Factory overhead Selling and administrative expenses Voice Com desires a profit equal to a 14% return on invested assets of $600,700. $201,200 68,200 a. Determine the amount of desired profit from the production and sale of 4,530 cell phones. 84,098 ✔ b. Determine the product cost per unit for the production of 4,530 cell phones. Round your answer to the nearest whole dollar. per unit c. Determine the product cost markup percentage for cell phones. Round your answer to two decimal places. d. Determine the selling price of cell phones. Round your answers to the nearest whole dollar.

Pricing is used as a term in finance and economics, pricing is the process of fixing a value for a product or a service. Pricing establishes a value for a product or service that the customer has to pay. A business can choose from different strategies wh…