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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-
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 Direct labor $24 33 Manufacturing overhead 43 Total costs $100 (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?
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