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Question - The following data pertain to LawnMate Corporation's 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 LawnMate's top-of-the-line mower?
(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.
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