Cullumber makes swimsuits and sells them directly to retailers. Although Cullumber 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. It says the all-body suit would sell for approximately $ 124. Given its experience, Cullumber believes the all-body suit would have the following manufacturing costs:

	Direct materials		$ 29
	Direct labour		35
	Manufacturing overhead		48
	Total costs		$ 112

(a1)

Assume that Cullumber uses cost-plus pricing, and sets the price 25% above the products costs. (Round answer to 2 decimal places, e.g. 15.25.)

What would be the price charged for the all-body swimsuit?

Selling price

Assume that Cullumber use target costing. What is the price that Cullumber would charge the retailer for the all-body swimsuit?

Selling price $

What is the highest acceptable manufacturing cost Cullumber would be willing to incur to produce the all-body swimsuit,if it desired a profit of $29 per unit? (Assume target costing)

Target cost $