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Leno Company makes swimsuits and sells these sults directly to retailers. Although Leno has a variety o sults, it does not make the All Body
Leno Company makes swimsuits and sells these sults directly to retailers. Although Leno has a variety o sults, it does not make the All Body suit used by highly skilled swimmers. The market research department belleves 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 belleves the All- Body suit would have the following manufacturing costs. Direct materials $27 Direct labor 29 Manufacturing overhead Total costs $100 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 $22 per unit? (Assume target costing.) Target cost S
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