Multiple Choice
Hofbauer Corporation's two products have the following characteristics: The constrained resource is a particular machine that is available for 10,400 minutes each month. Each unit of product M73O requires 6 minutes on this machine and each unit of product M26B requires 8 minutes on this machine.
-The company is considering launching a new product that would have a variable cost of $169.00 per unit and no avoidable fixed costs. It would require 16 minutes of the constrained resource. The absolute minimum acceptable selling price for the new product should be:
A) $226.60
B) $245.80
C) $169.00
D) $172.60
Correct Answer:

Verified
Correct Answer:
Verified
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