Daisley Products Inc

Multiple Choice

Daisley Products Inc.makes two products-B17U and R94X.Product B17U's selling price is $110.00 and its unit variable cost is $66.00.Product R94X's selling price is $238.00 and its unit variable cost is $142.80.The monthly demand is 1, 290 units for product B17U and 490 units for R94X.The constrained resource is a particular machine that is available for 10, 300 minutes each month.Each unit of product B17U requires 5 minutes on this machine and each unit of product R94X requires 14 minutes on this machine. The company is considering launching a new product that would have a variable cost of $178.00 per unit and no avoidable fixed costs.It would require 3 minutes of the constrained resource.The absolute minimum acceptable selling price for the new product should be:

A) $184.80
B) $204.40
C) $178.00
D) $198.40