Garwood Corporation's two products have the following characteristics: The constrained resource is a particular machine that is available for 10,100 minutes each month. Each unit of product K56J requires 10 minutes on this machine and each unit of product L72D requires 6 minutes on this machine.
-The company is considering launching a new product that would have a variable cost of $51.00 per unit.It would require 14 minutes of the constrained resource.The absolute minimum acceptable selling price for the new product should be:
A)$51.00
B)$54.40
C)$118.20
D)$98.60

Question

Garwood Corporation's two products have the following characteristics:  The constrained resource is a particular machine that is available for 10,100 minutes each month. Each unit of product K56J requires 10 minutes on this machine and each unit of product L72D requires 6 minutes on this machine.
-The company is considering launching a new product that would have a variable cost of $51.00 per unit.It would require 14 minutes of the constrained resource.The absolute minimum acceptable selling price for the new product should be:
A)$51.00 
B)$54.40 
C)$118.20 
D)$98.60

Quizplus · Accepted Answer

The Answer of  Garwood Corporation's two products have the following characteristics:  The constrained resource is a particular machine that is available for 10,100 minutes each month. Each unit of product K56J requires 10 minutes on this machine and each unit of product L72D requires 6 minutes on this machine.
-The company is considering launching a new product that would have a variable cost of $51.00 per unit.It would require 14 minutes of the constrained resource.The absolute minimum acceptable selling price for the new product should be:
A)$51.00 
B)$54.40 
C)$118.20 
D)$98.60

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