o peseestions displayed beioW. For many years, Leno Corporation has used a straightforward cost-plus pricing system, marking its goods up approximately 25 percent of total cost. The company has been profitable; however, it has recently lost considerable business to foreign competitors that have become very aggressive in the marketplace. These firms appear to be using target costing 6 An example of Leno's problem is typified by item no. 8976, which has the following unit-cost characteristics: Direct material Direct labor Manufacturing overhead Selling and administrative expenses s 75 205 125 The going market price for an identical product of comparable quality is $510, which is significantly below what Leno is charging. 6. In many industries, prices are the result of an interaction between market forces and costs True or False True False