The following data relate to LawMate corporations 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 percent 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 formulate that will result in a target price of $495 per mower:

(a) Variable manufacturing cost.

(b) Absorption manufacturing cost.

(c) Total variable cost.