Trepan Corporation Is Contemplating the Introduction of a New Product

question 36

Essay

Trepan Corporation is contemplating the introduction of a new product. The company has gathered the following information concerning the product: $\begin{array}{lr}\text {Number of units to be produced and sold each year }&25,000 \\\text {Investment required by the company }&\$ 300,000 \\\text {Projected unit manufacturing cost. }&\$ 30 \\\text {Projected annual selling and administrative expenses. }&\$ 90,000 \\\text { Desired rate of return on investment.}&20 \%\end{array}$ The company uses the absorption costing approach to cost-plus pricing as described in the text.
Required:
a. Compute the markup on absorption cost.
b. Compute the selling price.
c. If the price computed in "b" above is charged, and costs turn out as projected, can the company be assured that no loss will be sustained on the new product? Explain.

Grasp the principles of pressure and temperature relations in A/C systems.

Identify correct refrigerant management practices including recovery, recycling, and retrofitting.

Know the properties and uses of various compressor types in truck A/C systems.

Understand the significance of A/C system maintenance, including leak detection and component replacement.

---

Definitions:

Applications

The submission of materials or documents required to apply for a job, program, or service.

Concurrent Validation

A method of assessing the reliability of a test by comparing its results with those of an established measure or outcome at the same time.

Widget Designers

Professionals who specialize in creating small applications or program tools that can be embedded in websites or software interfaces to perform specific functions.