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Cheyenne Company makes swimsuits and sells these suits directly to retailers. Although Cheyenne has a variety of suits, it does not make the Performance suit
Cheyenne Company makes swimsuits and sells these suits directly to retailers. Although Cheyenne has a variety of suits, it does not make the Performance 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 Performance suit would sell for approximately $ Given its experience,Chevenne believes the Performance suit would have the following manufacturing costs.Direct materials$Direct laborManufacturing overheadTotal costs$aAssume that Cheyenne uses costplus pricing, setting the selling price above its costs. What would be the price charged forthe Performance swimsuit?Selling price
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