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.
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.
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter11: Differential Analysis And Product Pricing
Section: Chapter Questions
Problem 23E: Variable cost method of product pricing Based on the data presented in Exercise 17, assume that...
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![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](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F7ab872bc-c3bb-4f50-913f-8c8eef9f19ee%2F019c69e9-f3fd-401a-b58a-0facd61b2bc5%2Fcn3k7_processed.jpeg&w=3840&q=75)
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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