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The Management of Claypole Corporation Has Provided the Following Data

Question 68

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The management of Claypole Corporation has provided the following data concerning its two products-H59 and C92: The management of Claypole Corporation has provided the following data concerning its two products-H59 and C92:   The constrained resource is a particular machine that is available for 10, 100 minutes each month.Each unit of product H59 requires 5 minutes on this machine.Each unit of product C92 requires 3 minutes on this machine. The company is considering launching a new product that would have a variable cost of $88.00 per unit.It would require 11 minutes of the constrained resource.The absolute minimum acceptable selling price for the new product should be: A) $89.80 B) $107.80 C) $110.00 D) $88.00 The constrained resource is a particular machine that is available for 10, 100 minutes each month.Each unit of product H59 requires 5 minutes on this machine.Each unit of product C92 requires 3 minutes on this machine. The company is considering launching a new product that would have a variable cost of $88.00 per unit.It would require 11 minutes of the constrained resource.The absolute minimum acceptable selling price for the new product should be:


A) $89.80
B) $107.80
C) $110.00
D) $88.00

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