Nations Corporation Has Designed a New Product, K48, Whose Variable

Multiple Choice

Nations Corporation has designed a new product, K48, whose variable cost is $56.70 per unit and that requires 3.10 minutes of the constrained resource. The opportunity cost is $39.00 per minute used of the constrained resource. What is the minimum acceptable selling price for the new product?

A) $177.60
B) $95.70
C) $56.70
D) $120.90