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Leno Company makes swimsuits and sells these suits directly to retailers. Although Leno has a...

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Accounting

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 suit would have the following manufacturing costs.

Direct materials $ 29
Direct labor 29
Manufacturing overhead

42
Total costs

$ 100

Assume that Leno uses cost-plus pricing, setting the selling price 26% above its costs. What would be the price charged for the All-Body swimsuit?

Selling price $ enter the selling price in dollars

eTextbook and Media

Assume that Leno uses target costing. What is the price that Leno would charge the retailer for the All-Body swimsuit?

Selling price $ enter the selling price in dollars

eTextbook and Media

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 $ 27 per unit? (Assume target costing.)

Target cost $ enter the target cost in dollars

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