(Appendix 12A)Green Hornet Company Is Contemplating the Introduction of a New

question 29

Essay

(Appendix 12A)Green Hornet Company is contemplating the introduction of a new product.The company has gathered the following information concerning the product:

$\begin{array}{lccc}\text { Number of Units to Be Produced and Sold Each } & 16,000 \\\text { Year } & \\\text { Investment Required by the Company } & \$ 400,000 \\\text { Expected Unit Product Cost } & \$ 30 \\\text { Expected Annual Selling, General, and } & \\\quad \text { Administrative Expenses } & \$ 100,000\\\text { Desired Rate of Return on Investment }&20 \%\\\end{array}$


The company uses the absorption costing approach to cost-plus pricing.

Required:

a)Compute the markup on absorption cost.
b)Compute the target selling price.

Explain the structure and function of accessory organs in the digestive system.

Understand the importance of cultural sensitivity in business communication.

Recognize the impact of grammatical and stylistic choices on clarity and conciseness in business writing.

Identify strategies to simplify messages for audiences with various levels of English proficiency.

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Definitions:

Free and Open Markets

Economic systems where supply and demand are not hindered by undue restrictions, allowing for free trade and competition.

Efficient Level

The point at which a system operates at maximum productivity with minimum waste and expense.

Marginal Cost

The additional cost incurred in producing one more unit of a good or service.

Willingness to Pay

The maximum amount an individual is prepared to spend for a good or service, reflecting the value they derive from it.