trevor company is contemplating the introduction of a new

Pricing-Absorption Basis Trevor Company is contemplating the introduction of a new product. The company has gathered the following information concerning the product: Number of Units to Be Produced and Sold Each Year 12,000 Investment Required by the Company $200,000 Projected Unit Product Cost $25 Projected Annual Selling, General, and Administrative Expenses $90,000 Desired Rate of Return on Investment 15% The Company uses the absorption costing approach to cost-plus pricing. Required: Compute the markup on absorption Compute the target selling price. If the price computed in part 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