Rios Co. makes drones and uses the variable cost approach in setting product prices. Its costs for producing 42,000 units follow. The company targets a profit of $322,000 on this product. Variable Costs per Unit Direct materials $ 92 Direct labor 62 Overhead 47 Selling Fixed Costs (in total) Overhead $692,000 Selling 327,000 Administrative 307,000 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 Markup percentage Selling price 3