Blossom makes swimsuits and sells them directly to retailers. Although Blossom 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. It says the all- body suit would sell for approximately $118. Given its experience, Blossom believes the all- body suit would have the following manufacturing costs: Direct materials Direct labour Manufacturing overhead Total costs (a1) $26 30 48 $104 Assume that Blossom uses cost-plus pricing, and sets the price 25% above the product's costs. (Round answer to 2 decimal places, e.g. 15.25.) What would be the price charged for the all-body swimsuit?

Blossom makes swimsuits and sells them directly to retailers. Although Blossom 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. It says the all- body suit would sell for approximately $118. Given its experience, Blossom believes the all- body suit would have the following manufacturing costs: Direct materials Direct labour Manufacturing overhead Total costs (a1) $26 30 48 $104 Assume that Blossom uses cost-plus pricing, and sets the price 25% above the product's costs. (Round answer to 2 decimal places, e.g. 15.25.) What would be the price charged for the all-body swimsuit?

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter2: Building Blocks Of Managerial Accounting

Section: Chapter Questions

Problem 4PB: Pocket Umbrella, Inc. is considering producing a new type of umbrella. This new pocket-sized...

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