You received partial credit in the previous att Required information Exercise 15

Question

You received partial credit in the previous att Required information Exercise 15-32 Cost-Plus Pricing Formulas: Missing Data (LO 15-1, 15-3) (The following information applies to the questions displayed below The following data pertain to L awnMate Corporation's top-of-the-line lawn mower Variable manufacturing cost Applied fixed manufacturing cost Variable selling and administrative cost Allocated fixed selling and administrative cost $328 42 69 To achieve a target price of $531 per lawn mower, the markup percentage is 12 9 percent on total unit cost rch

Explanation / Answer

Part 1:

Variable manufacturing cost=328

Applied fixed manufacturing cost=42

variable selling and manufacturing cost=69

Target selling price= 531

Markup of 12.9% on cost i.e. 11.43% on sales.

Therefore markup on sales= 60.69

Total cost = 470.31

Therefore allocated fixed selling and administrative cost= 470.31-439= $31.31

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