Rios Company makes drones and uses the variable cost method in setting product price. Its costs for producing 20,000 units follow. The company targets a profit of $300,000 on this product. Variable Costs per Unit Direct materials $70 Direct labor 40 Overhead 25 Selling, general and administrative 15 Overhead Fixed Costs (total) $670,000 Selling, general and administrative $590,000 Units produced Targeted profit Required: 20,000 $300,000 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. (Use cells A2 to B16 from the given information and the cells below to complete this question.) 1. Total variable costs 1. Markup percentage $150x 52% x 2. Markup per unit $78 3. Selling price per unit $228