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Assume that Leno uses cost-plus pricing, setting the selling price 26% above its costs. What would be the price charged for the AllBody swimsuit? Selling
Assume that Leno uses cost-plus pricing, setting the selling price 26% above its costs. What would be the price charged for the AllBody swimsuit? Selling price What is the highest acceptable manufacturing cost Leno would be willing to incur to produce the All-Body swimsuit, if it desired a profit of $27 per unit? (Assume target costing) Target cost Leno Company makes swimsuits and sells these suits directly to retailers. Although Leno has a variety of suits, it does not make the AllBody suit used by highly skilled swimmers. The market research department believes that a strong market exists for this type of suit. The department indicates that the All-Body suit would sell for approximately $100. Given its experience, Leno belleves the All-Body suit would have the following manufacturing costs
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