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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 th 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 th All-Body suit used by highly skilled swimmers. The market research department believes that a strong market exists for this type suit. The department indicates that the All-Body suit would sell for approximately $100. Given its experience, Leno believes the Body suit would have the following manufacturing costs. Direct materials $27 Direct labor 29 Manufacturing overhead 44 Total costs S100 Assume that Leno uses target costing. What is the price that Leno would charge the retailer for the All Body swimsuit? Selling prices e Textbook and Media
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