The following data pertain to Lawn Master 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 $ 331 57 69 ? To achieve a target price of $551 per lawn mower, the markup percentage is 12.4 percent on total unit cost.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Exercise 15-35 Cost-Plus Pricing Formulas; Missing Data (LO 15-3)
[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
Applied fixed manufacturing cost
Variable selling and administrative cost
Allocated fixed selling and administrative cost
To achieve a target price of $551 per lawn mower, the markup percentage is 12.4 percent on total unit cost.
Exercise 15-35 Part 2
2. For each of the following cost bases, develop a cost-plus pricing formula that will result in a target price of $551 per mower: (Round
your percentage answers to 2 decimal places (i.e., .1234 should be entered as 12.34).)
(a) Variable manufacturing cost
(b) Absorption manufacturing cost
(c) Total variable cost
69 69
$ 331
57
69
?
$
551 =
551 =
551 =
Cost-Plus Pricing Formula
+
88
%
% x
%
x
Transcribed Image Text:Required information Exercise 15-35 Cost-Plus Pricing Formulas; Missing Data (LO 15-3) [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 Applied fixed manufacturing cost Variable selling and administrative cost Allocated fixed selling and administrative cost To achieve a target price of $551 per lawn mower, the markup percentage is 12.4 percent on total unit cost. Exercise 15-35 Part 2 2. For each of the following cost bases, develop a cost-plus pricing formula that will result in a target price of $551 per mower: (Round your percentage answers to 2 decimal places (i.e., .1234 should be entered as 12.34).) (a) Variable manufacturing cost (b) Absorption manufacturing cost (c) Total variable cost 69 69 $ 331 57 69 ? $ 551 = 551 = 551 = Cost-Plus Pricing Formula + 88 % % x % x
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