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[The following information applies to the questions displayed below.] The following data pertain to Lawn Master...

[The following information applies to the questions displayed below.]

The following data pertain to Lawn Master Corporation’s top-of-the-line lawn mower.

Variable manufacturing cost $ 323
Applied fixed manufacturing cost 57
Variable selling and administrative cost 62
Allocated fixed selling and administrative cost ?

To achieve a target price of $541 per lawn mower, the markup percentage is 12.7 percent on total unit cost.

Required:

  1. What is the fixed selling and administrative cost allocated to each unit of Lawn Master’s top-of-the-line mower? (Do not round your intermediate computations. Round your final answer to the nearest dollar amount.)
  2. For each of the following cost bases, develop a cost-plus pricing formula that will result in a target price of $541 per mower: (Round your percentage answers to 2 decimal places (i.e., .1234 should be entered as 12.34).)
Cost-Plus Pricing Formula
(a) Variable manufacturing cost $541 = + ( % × )
(b) Absorption manufacturing cost $541 = + ( % × )
(c) Total variable cost $541 = + ( % × )

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ekkarill92 answered 2 months ago
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