Mucky Duck makes swimsuits and sells these suits directly to retailers. Although MD hasa 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 $110. Givenits experience, MD believes the suit would have the following manufacturing costs: Direct Materials: $25 Direct Labor: $30 Manufacturing Overhead: $45 Total costs: $100 (a) Assume that MD uses cost-plus pricing, setting the selling price 25% above its costs. (1) What would be the price charged for the suit? (2) Under what circumstances might MD consider manufacturing the All-Body suit given this approach?