Solved

The Management of Kull Corporation Has Provided the Following Data

Question 32

Multiple Choice

The management of Kull Corporation has provided the following data concerning its two products-E76 and R73: The management of Kull Corporation has provided the following data concerning its two products-E76 and R73:   The constrained resource is a particular machine that is available for 9, 900 minutes each month.Each unit of product E76 requires 15 minutes on this machine.Each unit of product R73 requires 3 minutes on this machine. The company is considering launching a new product that would have a variable cost of $55.00 per unit.It would require 5 minutes of the constrained resource.The absolute minimum acceptable selling price for the new product should be: A) $87.00 B) $61.40 C) $55.00 D) $91.00 The constrained resource is a particular machine that is available for 9, 900 minutes each month.Each unit of product E76 requires 15 minutes on this machine.Each unit of product R73 requires 3 minutes on this machine. The company is considering launching a new product that would have a variable cost of $55.00 per unit.It would require 5 minutes of the constrained resource.The absolute minimum acceptable selling price for the new product should be:


A) $87.00
B) $61.40
C) $55.00
D) $91.00

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions