Smart Stream Inc. uses the variable cost method of applying the cost-plus approach to product pricing. The costs of producing and selling 10,000 cell phones are as follows: Variable costs per unit: Direct materials Direct labor Factory overhead $150 25 Selling and administrative expenses Total variable cost per unit 40 25 $240 Fixed costs: Factory overhead Selling and administrative expenses $350,000 140,000 Smart Stream desires a profit equal to a 30% return on invested assets of $1,200,000. a. Determine the variable costs and the variable cost amount per unit for the production and sale of 10,000 cell phones. Total variable costs Cost amount per unit $ $ b. Determine the variable cost markup percentage for cell phones. Round to two decimal places. % c. Determine the selling price of cell phones. If required, round to the nearest dollar. $ per cell phone