Vanscoter Corporation has designed a new product,R83,whose variable cost is $86.60 per unit and that requires 3.10 minutes of the constrained resource.The opportunity cost is $38.00 per minute used of the constrained resource.What is the minimum acceptable selling price for the new product?
A)$117.80
B)$124.60
C)$86.60
D)$204.40

Question

Quizplus · Accepted Answer

Selling price of new product? Variable cost of the new product + (Opportunity cost per unit of the constrained resource F1F1F1S1F1F1F10 Amount of the constrained resource required by a unit of the new product)
= $86.60 per unit + ($38.00 per minute F1F1F1S1F1F1F10 3.10 minutes per unit)= $86.60 per unit + $117.80 per unit = $204.40 per unit

Vanscoter Corporation Has Designed a New Product,R83,whose Variable Cost Is