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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

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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. $28 Direct materials Direct labor Manufacturing overhead 32 40 Total costs $100 Assume that Leno uses cost-plus pricing, setting the selling price 27% above its costs. What would be the price charged for the All- Body swimsuit? Selling price $ Assume that Leno uses target costing. What is the price that Leno would charge the retailer for the All-Body swimsuit? Selling price $ e Textbook and Media What is the highest acceptable manufacturing cost Leno would be willing to incur to produce the All-Body swimsuit, if it desired a profit of $28 per unit? (Assume target costing) Target cost $

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