Variable Cost Concept of Product Pricing Smart Stream Inc. uses the variable cost concept of applying the cost-plus approach to product pricing. The costs of producing and selling 4,500 cellular phones are as follows: Variable costs: Fixed costs: Direct materials $ 95 Factory overhead $242,500 Direct labor 44 Selling and administrative expenses 85,250 Factory overhead 29 Selling and administrative expenses 22 Total $190 Smart Stream wants a profit equal to a 15% rate of return on invested assets of $665,000. a. Determine the variable costs and the variable cost amount per unit for the production and sale of 4,500 cellular phones. Total variable costs Variable cost amount per unit b. Determine the variable cost markup percentage for cellular phones. % c. Determine the selling price of cellular phones. Round to the nearest cent. per cellular phone