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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
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 following 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) 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 $ e Textbook and Media Save for Later Attempts: 0 of 3 used Submit Answer Using multiple attempts will impact your score. 10% score reduction after attempt 2
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