Tork Corporation is about to announce a new product,J82,whose variable cost is $113.70 per unit and that would require 6.40 grams of a raw material that is the constrained resource in the company.The opportunity cost to use this constrained resource is $43.00 per gram.What is the minimum acceptable selling price for the new product?
A)$156.70
B)$275.20
C)$388.90
D)$113.70

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)
= $113.70 per unit + ($43.00 per gram F1F1F1S1F1F1F10 6.40 grams per unit)= $113.70 per unit + $275.20 per unit = $388.90 per unit

Tork Corporation Is About to Announce a New Product,J82,whose Variable