The management of Rodwell Corporation has provided the following data concerning its two products—E99 and V09: The constrained resource is a particular machine that is available for 10,400 minutes each month. Each unit of product E99 requires 8 minutes on this machine. Each unit of product V09 requires 10 minutes on this machine.
-The company is considering launching a new product that would have a variable cost of $181.00 per unit.It would require 14 minutes of the constrained resource.The absolute minimum acceptable selling price for the new product should be:
A)$206.20
B)$181.00
C)$182.50
D)$202.00

Question

The management of Rodwell Corporation has provided the following data concerning its two products—E99 and V09:  The constrained resource is a particular machine that is available for 10,400 minutes each month. Each unit of product E99 requires 8 minutes on this machine. Each unit of product V09 requires 10 minutes on this machine.
-The company is considering launching a new product that would have a variable cost of $181.00 per unit.It would require 14 minutes of the constrained resource.The absolute minimum acceptable selling price for the new product should be:
A)$206.20 
B)$181.00 
C)$182.50 
D)$202.00

Quizplus · Accepted Answer

The Answer of The management of Rodwell Corporation has provided the following data concerning its two products—E99 and V09:  The constrained resource is a particular machine that is available for 10,400 minutes each month. Each unit of product E99 requires 8 minutes on this machine. Each unit of product V09 requires 10 minutes on this machine.
-The company is considering launching a new product that would have a variable cost of $181.00 per unit.It would require 14 minutes of the constrained resource.The absolute minimum acceptable selling price for the new product should be:
A)$206.20 
B)$181.00 
C)$182.50 
D)$202.00

The Management of Rodwell Corporation Has Provided the Following Data