The Following Data Pertain to Waters Corporation's Residential Humidifier

question 3

Essay

The following data pertain to Waters Corporation's residential humidifier:
A.Calculate the fixed selling and administrative cost allocated to each humidifier.
A.Price = total unit cost + (markup percentage * total unit cost)
$450 = X + (0.12 * X)
$450 = 1.12X
$401.79 = X
Because the total unit cost is $401.79,the allocated fixed selling and administrative cost would be $21.79 ($401.79 - $240.00 - $80.00 - $60.00).
B.

B.For each of the following bases,determine the appropriate percentage markup on cost that will result in a target price of $450 per humidifier: (1)variable manufacturing cost,(2)absorption manufacturing cost,and (3)total variable cost.(Round percentages to the nearest one-hundredth of a percent. )

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Definitions:

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Digital Source

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A documented, structured approach with instructions for responding to unplanned incidents such as natural disasters, power outages, or cyber attacks, to quickly restore hardware, applications, and data.

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