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.

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 Direct materials $ 87 Direct labor 57 Overhead 42 Selling 32 Fixed Costs (in total) Overhead $687,000 Selling 322,000 Administrative 302,000 1. Compute the variable cost per unit. 2. Compute the markup percentage on variable cost. (Round percentage answer to 2 decimal places.) 3. Compute the product's selling price using the variable cost method. (Round your intermediate percentage calculations and final answer to 2 decimal places.) 1. 2. Variable cost per unit Markup percentage Selling price % 3