Titzer Corporation Is About to Announce a New Product, C02

Multiple Choice

Titzer Corporation is about to announce a new product, C02, whose variable cost is $134.80 per unit and that would require 5.90 grams of a raw material that is the constrained resource in the company. The opportunity cost to use this constrained resource is $68.00 per gram. What is the minimum acceptable selling price for the new product?

A) $401.20
B) $134.80
C) $202.80
D) $536.00