Rios Co. makes drones and uses the variable cost approach in setting product prices. Its costs for producing 38,000 units follow. The company targets a profit of $318,000 on this product. Variable costs per Unit Fixed Coats Direct materials $ 98 Overhead $688,000 Direct labor 58 Selling 323,000 Overhead 43 Administrative 301.000 Selling 1. Compute the variable cost per unit. 2. Compute the markup percentage on variable cost. (Round percentage answer to 2 decimal places.) 3. Compute the product's selling price using the variable cost method. 1. 2. 3. Variable cost per unit Markup percentage Selling price