Tork Corporation Is About to Announce a New Product,J82,whose Variable

Multiple Choice

Tork Corporation is about to announce a new product,J82,whose variable cost is $113.70 per unit and that would require 6.40 grams of a raw material that is the constrained resource in the company.The opportunity cost to use this constrained resource is $43.00 per gram.What is the minimum acceptable selling price for the new product?

A) $156.70
B) $275.20
C) $388.90
D) $113.70