Gastineau Corporation's two products have the following characteristics: The constrained resource is a particular machine that is available for 9, 600 minutes each month.Each unit of product J45Z requires 19 minutes on this machine and each unit of product W47E requires 7 minutes on this machine. The company is considering launching a new product that would have a variable cost of $168.00 per unit and no avoidable fixed costs.It would require 9 minutes of the constrained resource.The absolute minimum acceptable selling price for the new product should be:
A)$168.00
B)$171.00
C)$211.20
D)$195.00

Question

Gastineau Corporation's two products have the following characteristics:  The constrained resource is a particular machine that is available for 9, 600 minutes each month.Each unit of product J45Z requires 19 minutes on this machine and each unit of product W47E requires 7 minutes on this machine. The company is considering launching a new product that would have a variable cost of $168.00 per unit and no avoidable fixed costs.It would require 9 minutes of the constrained resource.The absolute minimum acceptable selling price for the new product should be:
A)$168.00 
B)$171.00 
C)$211.20 
D)$195.00

Quizplus · Accepted Answer

The Answer of Gastineau Corporation's two products have the following characteristics:  The constrained resource is a particular machine that is available for 9, 600 minutes each month.Each unit of product J45Z requires 19 minutes on this machine and each unit of product W47E requires 7 minutes on this machine. The company is considering launching a new product that would have a variable cost of $168.00 per unit and no avoidable fixed costs.It would require 9 minutes of the constrained resource.The absolute minimum acceptable selling price for the new product should be:
A)$168.00 
B)$171.00 
C)$211.20 
D)$195.00

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