IE Exercise 23-12 (Algo): Pricing using variable costs LO P6 Rios Company makes drones and uses the variable cost method in setting product price. Its costs for producing 31,000 units follow. The company targets a profit of $311,000 on this product. Variable Costs per Unit Direct materials Direct labor Overhead Selling, general and administrative Fixed Costs (total) Overhead Selling, general and administrative $81 51 36 26 $ 681,000 612,000 Required: 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. Navigation: 1. Use the Open Excel in New Tab button to launch this question. 2. When finished in Excel, use the Save and Return to Assignment button in the lower right to return to Connect. 1 2 3 4 5 6 7 8 9 10 11 Fixed Costs (total) 12 Overhead 13 Selling, general and administrative 14 30 A Variable Costs per Unit Direct materials Direct labor 15 Units produced 16 Targeted profit 17 Overhead Selling, general and administrative Rios Company makes drones and uses the variable cost method in setting product price. Its costs for producing 31,000 units follow. The company targets a profit of $311,000 on this product. B Workbook Statistics $81.00 $51.00 $36.00 $26.00 $681,000 $612,000 = Graded Worksheet 31,000 $311,000 18 Required: 19 1. Compute the total variable cost and the markup percentage. 20 2. Compute the dollar markup per unit on variable cost. 21 3. Compute the selling price per unit. 22 23 1. Total variable costs 24 1. Markup percentage 25 2. Markup per unit 26 3. Selling price per unit 27 C + DE F G H Give Fee