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Marigold Company makes swimsuits and sells these sults directly to retailers. Although Marigold has a variety of suits, it does not make the All-Body suit

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Marigold Company makes swimsuits and sells these sults directly to retailers. Although Marigold 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, Marigold believes the All-Body suit would have the following manufacturing costs. Direct materials $30 Direct labor 33 Manufacturing overhead 37 Total costs $100 . Assume that Marigold uses cost-plus pricing, setting the selling price 29% above its costs. What would be the price charged for the All-Body swimsuit? Selling price Study Assume that Marigold uses target costing. What is the price that Marigold would charge the retailer for the All-Body swimsuit? Selling price What is the highest acceptable manufacturing cost Marigold would be willing to incur to produce the All-Body swimsuit, if it desired a pront of $20 per unit? (Assume target costing.) Vre Target cost Divu

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