Demeester Corporation's two products have the following characteristics: The constrained resource is a particular machine that is available for 9,900 minutes each month. Each unit of product Y56G requires 10 minutes on this machine and each unit of product K46X requires 3 minutes on this machine.
-The company is considering launching a new product that would have a variable cost of $79.00 per unit. It would require 14 minutes of the constrained resource. The absolute minimum acceptable selling price for the new product should be:
A) $79.00
B) $118.20
C) $80.80
D) $104.20

Question

Demeester Corporation's two products have the following characteristics:  The constrained resource is a particular machine that is available for 9,900 minutes each month. Each unit of product Y56G requires 10 minutes on this machine and each unit of product K46X requires 3 minutes on this machine.
-The company is considering launching a new product that would have a variable cost of $79.00 per unit. It would require 14 minutes of the constrained resource. The absolute minimum acceptable selling price for the new product should be:
A) $79.00 
B) $118.20 
C) $80.80 
D) $104.20

Quizplus · Accepted Answer

The Answer of Demeester Corporation's two products have the following characteristics:  The constrained resource is a particular machine that is available for 9,900 minutes each month. Each unit of product Y56G requires 10 minutes on this machine and each unit of product K46X requires 3 minutes on this machine.
-The company is considering launching a new product that would have a variable cost of $79.00 per unit. It would require 14 minutes of the constrained resource. The absolute minimum acceptable selling price for the new product should be:
A) $79.00 
B) $118.20 
C) $80.80 
D) $104.20

Demeester Corporation's Two Products Have the Following Characteristics: the Constrained