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Whispering Winds Company makes swimsuits and sells these suits directly to retailers. Although Whispering Winds has a variety of suits, it does not make the
Whispering Winds Company makes swimsuits and sells these suits directly to retailers. Although Whispering Winds has a variety of suits, it does not make the Performance 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 Performance suit would sell for approximately $100. Given its experience, Whispering Winds believes the Performance suit would have the following manufacturing costs. Assume that Whispering Winds uses cost-plus pricing, setting the selling price 24% above its costs. What would be the price charged for the Performance swimsuit? Selling price eTextbook and Media Assume that Whispering Winds uses target costing What is the price that Whispering Winds would charge the retaller for the Performance swimsuit? Assume that Whispering Winds uses target costing. What is the price that Whispering Winds would charge the retailer for the Performance swimsuit? eTextbook and Media What is the highest acceptable manufacturing cost Whispering Winds would be willing to incur to produce the Performance swimsuit, if it desired a profit of $24 per unit? (Assume target costing) Target cost 5
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