25 Smart Stream Inc. uses the variable cost concept of applying the cost-plus approach to product pricing. The costs of producing and selling 10,000 cellular phones are as follows: Variable costs per unit: Fixed costs: Direct materials $150 Factory overhead $350,000 Direct labor Selling and admin. exp. 140,000 Factory overhead 40 Selling and administrative expenses 25 Total $240 Smart Stream desires a profit equal to a 30% rate of 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 cellular phones. Total variable costs 2,890,000 x Variable cost amount per unit 289 x b. Determine the variable cost markup percentage for cellular phones. Round to two decimal places. 12.46 X % c. Determine the selling price of cellular phones. If required round to the nearest dollar. 325 per phone