(b) Your answer is correct. Assume that Leno uses target costing. What is the price that Leno would charge the retailer for the All-Body swimsuit? Selling price 100 SHOW SOLUTION SHOW ANSWER LINK TO TEXT LINK TO TEXT LINK TO VIDEO Attempts: 3 of 3 used (c) 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 $20 per unit? (Assume target costing.) Target cost Exercise 8-3 al, b-c (Part Level Submission) (Video) Leno Company makes swimsuits and sells these suits directly to retailers. Although Leno has a variety of suits, it does not make the All-Body suit used by highly skilled swimmers. The market research department believes that a strong market exists for this type o suit. The department indicates that the All-Body suit would sell for approximately $100. Given its experience, Leno believes the All-Body suit would have the following manufacturing costs. $27 28 Direct materials Direct labor Manufacturing overhead Total costs 45 $100 (al) Your answer is correct. Assume that Leno uses cost-plus pricing, setting the selling price 30% above its costs. What would be the price charged for the All-Body swimsuit? Selling price 130