Question
The following data pertain to LawnMate Corporations top-of-the-line lawn mower. (please show work) Variable manufacturing cost $333 Applied fixed manufacturing cost $43 Variable selling and
The following data pertain to LawnMate Corporations top-of-the-line lawn mower.(please show work)
Variable manufacturing cost | $333 |
Applied fixed manufacturing cost | $43 |
Variable selling and administrative cost | $70 |
Allocated fixed selling and administrative cost | ? |
To achieve a target price of $553 per lawn mower, the markup percentage is 12.9 percent on total unit cost.
(a)What is the fixed selling and administrative cost allocated to each unit of LawnMates top-of-the-line mower? (Round your intermediate calculations and final answers to nearest dollar amount.)
(b)For each of the following cost bases, develop a cost-plus pricing formula that will result in a target price of $553 per mower. (Round your percentage values to 2 decimal places (i.e. .1234 should be entered as 12.34).)
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