The Following Data Pertain to Parson Corporation's Portable Air Conditioner

question 35

Essay

The following data pertain to Parson Corporation's portable air conditioner:
$\begin{array} { | l | r | } \hline \text { Variable manufacturing cost } & \$ 240 \\\hline \text { Applied fixed manufacturing cost } & 80 \\\hline \text { Variable selling and administrative cost } & 60 \\\hline \text { Allocated fixed selling and administrative cost } & ? \\\hline\end{array}$ To achieve a target price of $450 per air conditioner, the markup percentage on total unit cost is 12%.
Required:
A. Calculate the fixed selling and administrative cost allocated to each air conditioner.
B. For each of the following bases, determine the appropriate percentage markup on cost that will result in a target price of $450 per air conditioner: (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:

Elements

Elements refer to distinct and basic units or components of a larger system, structure, or set.

Identify

In data analysis, to identify means to recognize or establish the nature or characteristics of data, variables, or patterns.

WAIS

The Wechsler Adult Intelligence Scale, an IQ test designed to measure intelligence and cognitive ability in adults and older adolescents.

Predictive Validity

The extent to which a score or measurement can accurately predict future performance or behaviors.