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

1. Compute the total variable cost and the markup percentage.
2. Compute the dollar markup per unit on variable cost.
3. Compute the selling price per unit.

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Variable Costs per Unit Direct materials.. Direct labor..... Overhead... Selling, general and administrative $70 40 25 15 Fixed Costs (total) Overhead...... Selling, general and administrative $670,000 590,000