Rios Co makes drones and uses the variable cost approach in setting product prices Its costs for producing 37,000 units follow The company targets a profit of $317,000 on this product Variable Costs per Unit Fixed Costs Direct materials $ 87 Overhead $ 687,000 Direct labor 57 Selling 322,000 Overhead 42 Administrative 302,000 Selling 32 1 Compute the variable cost per unit 2 Compute the markup percentage on variable cost 3 Compute the products selling price using the variable cost method

Question: Rios Co. makes drones and uses the variable cost approach in setting product prices. Its costs for producing 37,000 units follow. The company targets a

Rios Co. makes drones and uses the variable cost approach in setting product prices. Its costs for producing 37,000 units follow. The company targets a profit of $317,000 on this product.

Variable Costs per Unit			Fixed Costs
Direct materials	$	87	Overhead	$	687,000
Direct labor		57	Selling		322,000
Overhead		42	Administrative		302,000
Selling		32

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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