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Mucky Duck makes swimsuits and sells them directly to retailers. Although Mucky Duck has a variety of suits, it does not make the all-body suit
Mucky Duck makes swimsuits and sells them directly to retailers. Although Mucky Duck 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. It says the all-body suit would sell for approximately $118. Given its experience, Mucky Duck believes the all-body suit would have the following manufacturing costs: $28 35 Direct materials Direct labour Manufacturing overhead Total costs 44 $107 (a1) Your answer is correct. Assume that Mucky Duck uses cost-plus pricing, and sets the price 25% above the product's costs. (Round answer to 2 decimal places, e.g. 15.25.) What would be the price charged for the all-body swimsuit? $ $ 133.75 Selling price What is the highest acceptable manufacturing cost Mucky Duck would be willing to incur to produce the all-body swimsuit? (Round answer to 2 decimal places, e.g. 15.25.) $ $ Target cost 107
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