Review Questions 20.2 Think of an industry in which political considerations are important in the setting prices. Explain what the product is and why political issues are important. Review Questions 20.18 What is meant by the term contribution margin per unit of scarce resource? How is this concept used in making product mix decisions? Exercises 20.25 E20.25 Cost-plus pricing formulas; missing data: manufacturer LO20.3 The following data relate to LawnMate Corporation's top-of-the-line lawnmower. Variable manufacturing cost $275 Applied fixed manufacturing cost 55 Variable selling and administrative cost 66 Allocated fixed selling and administrative cost ? To achieve a target price of $495 per lawnmower, the markup percentage is 12.5 per cent on total unit cost. Required: 1 What is the fixed selling and administrative cost allocated to each unit of LawnMate's top-of-the-line mower? 2 For each of the following cost bases, develop a cost-plus pricing formula that will result in a target (a) Variable manufacturing cost. (b) Absorption manufacturing cost. (c) Total variable cost