Leno Company makes swimsuits and sells these suits directly to retailers. Although Leno has a variety of suits, it does not make the AllBody 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 $29 Direct labor 29 Manufacturing overhead quad42 Total costs $100 (a1) 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 AllBody swimsuit? Selling price $ eTextbook and Media Attempts: 1

Leno Company makes swimsuits and sells these suits directly to retailers. Although Leno has a variety of suits, it does not make the AllBody 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. (a1) 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 AllBody swimsuit? Selling price \$ eTextbook and Media Attempts: 1 of 5 used (b) * Your answer is incorrect. Assume that Leno uses target costing. What is the price that Leno would charge the retailer for the All-Body swimsuit? Selling price \$ Leno Company makes swimsuits and sells these suits directly to retailers. Although Leno has a variety of suits, it does not make the AllBody 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. (a1) 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 AllBody swimsuit? Selling price \$ eTextbook and Media Attempts: 1 of 5 used (b) * Your answer is incorrect. Assume that Leno uses target costing. What is the price that Leno would charge the retailer for the All-Body swimsuit? Selling price \$