The management of Kull Corporation has provided the following data concerning its two products-E76 and R73: The constrained resource is a particular machine that is available for 9, 900 minutes each month.Each unit of product E76 requires 15 minutes on this machine.Each unit of product R73 requires 3 minutes on this machine. The company is considering launching a new product that would have a variable cost of $55.00 per unit.It would require 5 minutes of the constrained resource.The absolute minimum acceptable selling price for the new product should be:
A)$87.00
B)$61.40
C)$55.00
D)$91.00

Question

The management of Kull Corporation has provided the following data concerning its two products-E76 and R73:  The constrained resource is a particular machine that is available for 9, 900 minutes each month.Each unit of product E76 requires 15 minutes on this machine.Each unit of product R73 requires 3 minutes on this machine. The company is considering launching a new product that would have a variable cost of $55.00 per unit.It would require 5 minutes of the constrained resource.The absolute minimum acceptable selling price for the new product should be:
A)$87.00 
B)$61.40 
C)$55.00 
D)$91.00

Quizplus · Accepted Answer

The Answer of The management of Kull Corporation has provided the following data concerning its two products-E76 and R73:  The constrained resource is a particular machine that is available for 9, 900 minutes each month.Each unit of product E76 requires 15 minutes on this machine.Each unit of product R73 requires 3 minutes on this machine. The company is considering launching a new product that would have a variable cost of $55.00 per unit.It would require 5 minutes of the constrained resource.The absolute minimum acceptable selling price for the new product should be:
A)$87.00 
B)$61.40 
C)$55.00 
D)$91.00

The Management of Kull Corporation Has Provided the Following Data