Weygandt, Manageouu Assignment Gradebook ORION Downloadable eTexthook nt CALCULA
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Question
Weygandt, Manageouu Assignment Gradebook ORION Downloadable eTexthook nt CALCULATOR FULL SCREEN PRINTER VERSTON BACK Exercise 8-3 (Part Level Submission) Leno Company makes swimsuits and sells these suits directly to retailers. Although Leno has a the marlence ero bere tey suit wouahts for this bpe of sut The department indicates that the All Body sut would sell for approximately $11. Give its experience, Leno believes the All-Body suit would have the following manufacturing costs Direct materials Direct labor Manufacturing overhead 48 Total costs $26 $107 (a1) Your answer is incorrect. Try again. Assure that eno uses cost plus pricing, setting the selling price 26% above its costs. What would be the price charged or the A Body swimsuit? (Round ansver to 2 decimalExplanation / Answer
a) Calculate selling price :
Cost = 107
Selling price = 107*1.26 = 134.82
b) Target cost = Selling price-desired profit per unit
= 111-26
Target cost = 85 per unit
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