The following data relate to LawnMate Corporation's top-of-the-line lawnmower.

Variable manufacturing cost

$

550

Applied fixed manufacturing cost

110

Variable selling and administrative cost

132

Allocated fixed selling and administrative cost

?

To achieve a target price of $990 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 price of $990 per mower:
3. (a)variable manufacturing cost
4. (b)absorption manufacturing cost
5. (c)total variable cost.