Exercise M-3 (Part Level Submission) 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 of suit. The department indicates that the All-Body suit would sell for approximately $107. Given its experience, Leno believes the All-Body suit would have the following manufacturing costs. Direct materials Direct labor Manufacturing overhead Total costs $23 32 49 $104 (a1) Your answer is correct. Assume that Leno uses cost-plus pricing, setting the selling price 23% above its costs, what would be the price charged for the All-Body swimsuit? (Round answer to 2 decimal places, eg, 10.50.) Selling price Click if you would like to Show Work for this question: Open Show Work 127.92 SHOW SOLUTION SHOW ANSWER LINK TO TEXT LINK TO TEXT Attempts: 1 of 5 used (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 107