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please answer the following questions: 1. assume that Leno uses cost- plus pricing, setting the selling price 20% above its costs. What would be the
please answer the following questions:
i zw Policies urrent Attempt in Progress Leno Company makes swimsuits and sells these suits directly to retailers. Although Leno 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, Leno believes the All- Body sult would have the following manufacturing costs. Direct materials Direct labor Manufacturing overhead Total costs $23 27 50 $100 1. assume that Leno uses cost- plus pricing, setting the selling price 20% above its costs. What would be the price charged for the All- Body swimsuit?
2.Assume that Leno uses target costing. What is the price that Leno would charge the retailer for the all- body suit?
3.What is the highest acceptable manufacturing cost Leno will be willing to incur to produce the all- body swimsuit if it desired a profit of $26 per unit?
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