Accounting 26th Edition by Carl Warren ,Jim Reeve ,Jonathan Duchac

Exercise 51

Variable cost concept of product pricing
Based on the data presented in Exercise 25-18, assume that Smart Stream Inc. uses the variable cost concept of applying the cost-plus approach to product pricing.
a. Determine the variable costs and the variable cost amount per unit for the production and sale of 10,000 cellular phones.
b. Determine the variable cost markup percentage (rounded to two decimal places) for cellular phones.
c. Determine the selling price of cellular phones. Round to the nearest dollar.