Question: Rios Co. makes drones and uses the variable cost approach in setting product prices. Its costs for producing 20,000 units follow. The company targets a

Rios Co. makes drones and uses the variable cost approach in setting product prices. Its costs for producing 20,000 units follow. The company targets a profit of $300,000 on this product.

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.

Fixed Costs (Intotal) Varlable Costs per Unit eisal. Selling $670,000 305,000 285,000 $70 Denies... Selling 25 10

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