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o t stude/Xy D -xva Microsoft Office Home× s://newconnect.mheducation.com/flow/connect.html Students Home C Mail-phort Connect Drs 10 6 Saved 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 on total unit cost a target price of $531 per lawn mower, the markup percentage is 12.9 percent

Explanation / Answer

Answer to Question 15-32

Variable manufacturing cost - $328

Applied fixed manufacturing costs - $42

Variable selling and admin costs - $69

Allocated fixed selling and admin cost be X

Markup = 12.9% (Total costs) = 12.9%x + 12.9%(439) = 0.129x +56.631

Sale price = $531

Sale price = Total Cost + Markup

531 = 439+x + 0.129x + 56.631

1.129x = 531 - 439 - 56.631

1.129x = 35.369

x = 31.33 = Allocated fixed selling and admin costs

Part 2 has been already answered as per the details in the box

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