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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
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 Manufacturing overhead Total costs (a1) $29 29 42 $100 Your answer is correct. Assume that Leno uses cost-plus pricing, setting the selling price 26% above its costs. What would be the price charged for the All-Body swimsuit? Selling price $ 126
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