Print Item Calculator eBook 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: Fixed costs: Direct materials Direct labor Factory overhead Selling and administrative expenses Factory overhead $150 25 40 25 $240 $350,000 140,000 Selling and admin. exp. Total variable cost per unit 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 Total variable cost Variable cost amount per unit b. Determine the variable cost markup percentage for cellular phones. Round to two decimal places. the production and sale of 10,000 cellular phones. c. Determine the selling price of cellular phones. If required, round to the nearest dollar. per cellular phone