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Moravian College Operations And Supply Chain Management Assignment Help - Hannon Company


Question - Hannon Company makes swimsuits and sells these suits directly to retailers. Although Hannon 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, Hannon
believes the All-Body suit would have the following manufacturing costs.
Direct materials ……………… $ 25
Direct labor …………………….. 30
Manufacturing overhead ……….. 45
Total costs ……………………. $100

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