Werry Company Is About to Introduce a New Product

question 33

Multiple Choice

Werry Company is about to introduce a new product. It is expected that the following costs would be incurred when 25,000 units are produced and sold in a year: Werry Company uses the absorption costing approach to cost-plus pricing as described in the text.
-Assume that the company uses a markup of 90% in order to determine selling prices.The selling price under the absorption costing approach would be:

• A)$45.60
• B)$38.00
• C)$41.80
• D)$49.40

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Definitions:

Primary Alcohol

An alcohol with the hydroxyl group (-OH) attached to a carbon atom that is connected to only one other carbon atom.

Grignard-Based Synthesis

A method of forming carbon-carbon bonds by reacting Grignard reagents (organomagnesium compounds) with electrophiles, crucial in the formation of alcohols, carboxylic acids, and other functional groups.

Benzyl Bromide

An organic compound consisting of a benzene ring attached to a bromomethyl group, used as a chemical intermediate in synthesis.

3-Phenylpropan-1-ol

An organic compound that is a member of the alcohol functional group and is characterized by a phenyl ring attached to a three-carbon chain ending with an -OH group.