Variable Cost Method of Product Pricing 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 Fixed costs: Factory overhead 40 25 $240 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