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Current Attempt in Progress Indigo Company makes swimsuits and sells these suits directly to retailers. Although Indigo 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, Indigo believes the Performance suit would have the following manufacturing costs. $25 Direct materials Direct labor Manufacturing overhead 30 45 Total costs $100 X Your answer is incorrect. Assume that Indigo uses cost-plus pricing, setting the selling price 30% above its costs. What would be the price charged for the Performance swimsuit? Selling price 125 e Textbook and Media Your answer is correct. Assume that Indigo uses target costing What is the price that Indigo would charge the retailer for the Performance swimsuit? Sellingerie 100 e Textbook and Media Your answer is correct. Assume that Indigo uses target costing. What is the price that Indigo would charge the retailer for the Performance swimsuit? Selling price $ 100 e Textbook and Media X Your answer is incorrect. What is the highest acceptable manufacturing cost Indigo would be willing to incur to produce the Performance swimsuit, if it desired a profit of $30 per unit? (Assume target costing.) Torget cost 75 e Textbook and Media Save for Later

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