Pina Colada Company makes swimsuits and sells these suits directly to retailers. Although Pina Colada has a variety of suits, it doesnot make the Performance suit used by highly skilled swimmers. The market research department believes that a strong market existsfor this type of suit. The department indicates that the Performance suit would sell for approximately $100. Given its experience, PinaColada believes the Performance suit would have the following manufacturing costs.Direct materialsDirect labor$2433Manufacturing overhead 43Total costs$100x Your answer is incorrect.Assume that Pina Colada uses cost-plus pricing, setting the selling price 23% above its costs. What would be the price charged forthe Performance swimsuit?Selling price$125 Assume that Pina Colada uses target costing. What is the price that Pina Colada would charge the retailer for the Performanceswimsuit?Selling pricee Textbook and Media* Your answer is incorrect.What is the highest acceptable manufacturing cost Pina Colada would be willing to incur to produce the Performance swimsuit, ifit desired a profit of $23 per unit? (Assume target costing.)Target costPina Colada Corporation produces snowboards. The following unit cost information is available: direct materials $18, direct labor $7.variable manufacturing overhead $4, fixed manufacturing overhead $10, variable selling and administrative expenses $2, and fixedselling and administrative expenses $13. Using a 45% markup percentage on total unit cost, compute the target selling price. (Roundanswer to 2 decimal places, e.g. 10.50.)Target selling price

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Pina Colada Company makes swimsuits and sells these suits directly to retailers. Although Pina Colada 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, Pina Colada believes the Performance suit would have the following manufacturing costs. Direct materials Direct labor Manufacturing overhead Total costs $24 33 43 $100 x Your answer is incorrect Assume that Pina Colada uses cost-plus pricing, setting the selling price 23% above its costs. What would be the price charged for the Performance swimsuit?

Pina Colada Company makes swimsuits and sells these suits directly to retailers. Although Pina Colada 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, Pina Colada believes the Performance suit would have the following manufacturing costs. Direct materials Direct labor Manufacturing overhead Total costs $24 33 43 $100 x Your answer is incorrect Assume that Pina Colada uses cost-plus pricing, setting the selling price 23% above its costs. What would be the price charged for the Performance swimsuit?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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