Up to how much should the company be willing to pay to obtain enough of the constrained resource to satisfy demand for the two existing products?
A)$6.80 per minute
B)$95.20 per minute
C)$44.00 per minute
D)$8.80 per minute

Question

Quizplus · Accepted Answer

The company should be willing to pay up to the contribution margin per unit of the constrained resource, which is $6.80 per minute, to obtain enough of the constrained resource to satisfy demand for the two existing products.

Up to How Much Should the Company Be Willing to Pay