Rios Co. makes drones and uses the variable cost approach in setting product prices. Its costs for producing 36,000 units follow. The company targets a profit of $316,000 on this product. Variable Costs per Unit Direct materials $ 86 Direct labor 56 Overhead 41 Selling 31 Fixed Costs (in total) Overhead $686,000 Selling 321,000 Administrative 301,000 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. (Round your intermediate percentage calculations and final answer to 2 decimal places.) 1. Variable cost per unit 2. % Markup percentage Selling price 3