Rios Co. makes drones and uses the variable cost approach

Rios Co. makes drones and uses the variable cost approach in setting product prices. Its costs for producing 37,000 units follow. The company targets a profit of $317,000 on this product.
 

Variable Costs per Unit   Fixed Costs  
Direct materials $ 87   Overhead $ 687,000  
Direct labor   57   Selling   322,000  
Overhead   42   Administrative   302,000  
Selling   32          

 
1.
Compute the variable cost per unit .?
2. Compute the markup percentage on variable cost. ?

3. Compute the product’s selling price using the variable cost method .?

 

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