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Rios Company makes drones and uses the variable cost method in setting product price. Its costs for producing 26,000 units follow. The company targets
Rios Company makes drones and uses the variable cost method in setting product price. Its costs for producing 26,000 units follow. The company targets a profit of $306,000 on this product. Variable Costs per Unit Direct materials Direct labor Overhead Selling, general and administrative $ 76 46 31 21 Fixed Costs (total) Overhead $ 676,000 Selling, general and administrative 602,000 1. Compute the total variable cost and the markup percentage. 2. Compute the dollar markup per unit on variable cost. 3. Compute the selling price per unit. (For all requirements, round your final answers to the nearest whole number.) Answer is complete but not entirely correct. 1. Total variable costs $ 4,524,000 ( Markup percentage 35% 2 Markup per unit $ 235 3 Selling price per unit 235
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