Hello Can someone assist with this question Specifically par

Hello,  

Can someone assist with this question? Specifically part B. A breakdown would be vey helpful.  

Solution

As part b is specifically asked,

Under Target Costing, Price that Leno would charge to retailer for the All body swimsuit is below

We know Selling Price = $104(Given in question)

Mark up on selling price = 26%

Target cost per unit therefore = $104-(26%*$104)

= $104-$27.04   

= $76.96