Total Cost Concept of Product PricingSmart Stream Inc uses the total cost concept of applying the cost-plus approach to product pricing. The costs of producing and selling 100 cellular phones are as follows:Variable costs:Direct material: 120,200Direct labor:99,800Fixed costs:Factory overhead: 108,000Selling and administrative expenses:74,900Total costs:402,900Smart Stream wants a profit equal to a 16.9% rate of return on invested assets of $774,900.Determining the total costs and the total cost
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