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Reddinger Corporation Is About to Launch a New Product,Z49,whose Variable

Question 63

Essay

Reddinger Corporation is about to launch a new product,Z49,whose variable cost is $143.70 per unit and that would require 5.80 centiliters of a key raw material that is the company's constrained resource.The opportunity cost of this raw material is $69.00 per centiliter used.
Required:
What advice would you give to the company concerning the price that should be charged for the new product Z49?

Correct Answer:

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Selling price of new product? Variable c...

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