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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-

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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 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, Leno believes the All-Body suit would have the following manufacturing costs. Direct materials $23 Direct labor 27 Manufacturing overhead 50 Total costs $100 Assume that Leno 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

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