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 of producing and selling 10000 cell phones are as follows: variable cost per unit: direct materials $150, direct labor $25, factory overhead $40, selling and administrative expenses $25. total variable cost per unit $240. fixed cost: factory overhead $350000, selling and admin exp. 140000. determine the variable costs and the variable cost amount per unit for the production and sale of 10000 cellular phones.

determine the variable cost markup percentage for cellular phones. round to 2 decimal places.