The Following Data Pertain to Waters Corporation's Residential Humidifier To Achieve a Target Price of $450 Per Humidifier, the

question 53

Essay

The following data pertain to Waters Corporation's residential humidifier: $$\begin{array} { l r } \text { Variable manufacturing cost } & \$ 240 \\\text { Applied fixed manufacturing cost } & 80 \\\text { Variable selling and administrative cost } & 60 \\\text { Allocated fixed selling and administrative cost } & ?\end{array}$$
To achieve a target price of $450 per humidifier, the markup percentage on total unit cost is 12%.
Required:
A. Calculate the fixed selling and administrative cost allocated to each humidifier.
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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