Question
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
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 $106. Given its experience, Leno believes the All-Body suit would have the following manufacturing costs. Direct materials $29 Direct labor 29 Manufacturing overhead 46 Total costs $104 Incorrect answer. Your answer is incorrect. Try again. 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? (Round answer to 2 decimal places, e.g. 10.50.)
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