Question: 46 Rios Company makes drones and uses the variable cost method in setting product price. Its costs for producing 26,000 units follow. The company targets
46 Rios Company makes drones and uses the variable cost method in setting product price. Its costs for producing 26,000 units follow. The company targets a profit of $306,000 on this product. Variable costs per Unit Direct materials $ 76 Direct labor Overhead 31 Selling, general and administrative 21 Fixed costs (total) Overhead $ 676,000 Selling, general and administrative 602,000 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 (For all requirements, round your final answers to the nearest whole number.) % 1. Total variable costs 1. Markup percentage 2. Markup per unit 3. Selling price per unit
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