Answer:
1. Variable cost per unit   = $150
2. Markup percentage     = 34.89%
3. Selling price                 = $202.33
Explanation:
Variable cost per unit = 70+40+25+15= $150
Fixed cost   =  670,000+ 305,000 +285,000= $1,260,000
Fixed cost per unit  =    1,260,000/30,000= $42
Profit per unit   =        <u>Targeted profit</u>
                                Targeted production unit
                           = <u>$310,000 </u>   =$10.33
                                 30,000
 
Markup percenge =     <u>Fixed cost per unit + profit per unit</u>
                                           Variable cost per unit
                                 =<u>$42+ $10.33</u>    =    <u>52.33 </u>* <u>100</u>   = 34.89%
                                        $150                   $150      1
Selling Price        =  Variable cost per unit + markup
                             =  $150+$42+$10.33
                              = $202.33
Variable cost-plus pricing is calculated by  determining variable costs per unit and adding mark-up which will cover fixed costs per unit and generate a targeted profit margin.