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.

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