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Home / Questions / The following data pertain to LawnMate Corporation’s top-of-the-line lawn mower Variable m...

The following data pertain to LawnMate Corporation’s top-of-the-line lawn mower Variable manufacturing

The following data pertain to LawnMate Corporation’s top-of-the-line lawn mower. 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 lawn mower, 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 formula that will result in a target price of $495 per mower: (a) Variable manufacturing cost, (b) Absorption manufacturing cost, and (c) Total variable cost.

Apr 11 2020 View more View Less

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