yardages n the go arge potential market. Because of colli more than $90 for LittleLaser: At this price, Eckert Bel laser guns. Eckert w ill require an investment of $8,000,000 to manufacture, a and the com. pany wants an ROI of 20%. Instructions Determine the target cost for one LittleLaser E8- st and E8-3 Leno Company makes swimsuits and sells thes Leno has a variety of suits, it does not make the All-Body suit used by highly skilled mers. The market research department believes that a strong market existsWin suit. The department indicates that the All-Body suit would sell for approximately feof e suits directly to retailers. Al for this type Given its ex turing costs. ven its experience, Leno believes the All-Body suit would have the following manufac Direct materials Direct labor s 25 30 45 $100 Manufaeturing overhead Total costs Instructions (a) Assume that Leno uses cost-plus pricing, setting the selling price 25% above its costs. (1) What would be the price charged for the All-Body swimsuit? (2) Under what cir cumstances might Leno consider manufacturing the All-Body swimsuit given this approach? (b) Assume that Leno uses target costing. What is the price that Leno would charge the retailer for the All-Body swimsuit? (c) What is the highest acceptable manufacturing cost Leno would be willing to incur to produce the All-Body swimsuit, if it desired a profit of $25 per unit? (Assume target costing.) E8-4 Kaspar Corporation makes a commercial-grade cooking griddle. The follovwing information is available for Kaspar Corporation's anticipated annual volu me of 300