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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

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 $115. Given its experience, Leno believes the All-Body suit would have the following manufacturing costs.

Direct materials $30
Direct labor 35
Manufacturing overhead

45

Total costs

$110

Assume that Leno uses target costing. What is the price that Leno would charge the retailer for the All-Body swimsuit?

Selling Price $________________________

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