Product Cost Concept of Product Pricing MyPhone Inc. uses the product cost concept of applying the cost-plus approach to product pricing. The costs of producing and selling 2,000 units of cellular phones are as follows: Variable costs: Fixed costs: Direct materials $109 per unit Factory overhead $76,000 Direct labor 40 Selling and admin. exp. 26,000 Factory overhead 34 Selling and admin. exp. 27 Total $210 per unit MyPhone desires a profit equal to a 25% rate of return on invested assets of $153,600. a. Determine the total manufacturing costs for the production and sale of 2,000 units. Total Manufacturing Costs Variable $ Fixed factory overhead Total $ Determine the cost amount per unit for the production and sale of 2,000 units. $ per unit b. Determine the product cost markup percentage per unit. Round your percentage answer to one decimal place. % c. Determine the selling price per unit. Use the rounded product cost markup percentage in your calculations, and round the amount of the markup to the nearest whole dollar. $ per unit
Please illustrate calculation clearly so I can understand how you got the answer and list each answer with the question.