Variable Cost Concept of Product Pricing Willis Products Inc. uses the variable cost concept of applying the cost-plus approach to product pricing. The costs of producing and selling 200,000 units of medical tablets are as follows: Variable costs per unit: er unit: Fixed costs: Direct materials $ 75 115 Factory overhead $ 800,000 Selling and admin. exp. 1,200,000 Direct labor Factory overhead 30 Selling and admin. exp. 20 Total $240 Willis Products desires a profit equal to a 20% rate of return on invested assets of $12,000,000. a. Determine the variable costs and the cost amount per unit for the production and sale of 200,000 units of medical tablets. Total variable costs 224 x Cost amount per unit $ per unit b. Determine the variable cost markup percentage per unit. Round your percentage answer to two decimal places. c. Determine the selling price per unit. Use the rounded variable cost markup percentage in your calculations, and round the amount of the markup to the nearest whole dollar. $ per unit Feedback Check My Work a. Total variable costs per unit times the number of units. b. Markup percentage is equal to the sum of desired profit and total fixed costs divided by total variable costs. c. Cost per unit plus markup is equal to the selling price