Answered step by step
Verified Expert Solution
Question
1 Approved Answer
only need help with B Sheridan makes swimsuits and sells them directly to retailers. Although Sheridan has a variety of suits, it does not make
only need help with B
Sheridan makes swimsuits and sells them directly to retailers. Although Sheridan 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 $ 122. Given its experience, Sheridan believes the all-body suit would have the followin manufacturing costs: Direct materials $ 30 Direct labour 30 Manufacturing overhead 48 Total costs $ 108 (a 1) Your answer is correct. Assume that Sheridan 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? Selling price $ 135 (a3) Your answer is correct. What is the highest acceptable manufacturing cost Sheridan would be willing to incur to produce the all-body swimsuit? (Round answer to 2 decimal places, e.g. 15.25.) Target cost $ CA 97.60 e Textbook and Media Attempts: 1 of 3 used Using multiple attempts will impact your score. 10% score reduction after attempt 2 (b) Your answer is incorrect. Assume that Sheridan uses target costing. What is the price that Sheridan would charge retailers for the all-body swimsuit? Selling price $Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started