The following data pertain to Royal Lighting Company’s oak-clad, contemporary chandelier.
Variable manufacturing cost | $200 |
Applied fixed manufacturing cost | 70 |
Variable selling and administrative cost | 30 |
Allocated fixed selling and administrative cost | 50 |
Required: For each of the following cost bases, develop a cost-plus pricing formula that will result in a price of 5400 for the oak chandelier.
1. Variable manufacturing cost.
2. Absorption manufacturing cost.
3. Total cost.
4. Total variable cost.
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