Burrington Products Inc

Multiple Choice

Burrington Products Inc. makes two products—Z74I and R53Y. Product Z74I's selling price is $102.00 and its unit variable cost is $71.40. Product R53Y's selling price is $432.00 and its unit variable cost is $302.40. The monthly demand is 2,500 units for product Z74I and 470 units for R53Y. The constrained resource is a particular machine that is available for 9,900 minutes each month. Each unit of product Z74I requires 3 minutes on this machine and each unit of product R53Y requires 16 minutes on this machine.
-The company is considering launching a new product that would have a variable cost of $160.00 per unit and no avoidable fixed costs.It would require 18 minutes of the constrained resource.The absolute minimum acceptable selling price for the new product should be:

A) $160.00
B) $168.10
C) $343.60
D) $305.80