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Crane Company makes swimsuits and sells these suits directly to retailers. Although Crane has a variety of suits. It does not make the All-Body suit
Crane Company makes swimsuits and sells these suits directly to retailers. Although Crane 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 of suit. The department indicates that the All-Body suit would sell for approximately $100. Given its experience. Crane believes the All- Body suit would have the following manufacturing costs $23 Direct materials Direct labor Manufacturing overhead 27 50 Total costs $100 (1) Assume that Crane uses cost-plus pricing, setting the selling price 20% above its costs. What would be the price charged for the All-Body swimsuit? Selling price $ tory Tickets Wine 0 Destion 9 0 1 0337 IN X Wher Checherorie A Tech Media > 2 3 5 6 7 E T Y U Q O w s A US D F G 1 H V B N N M lom Comment Assume that Crane uses target costing. What is the price that Crane would charge the retailer for the All-Body swimsuit? Selling price
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