Larsen Corporation Has Designed a New Product, J57, Whose Variable

Multiple Choice

Larsen Corporation has designed a new product, J57, whose variable cost is $61.80 per unit and that requires 3.30 minutes of the constrained resource. The opportunity cost is $31.00 per minute used of the constrained resource. What is the minimum acceptable selling price for the new product?

A) $92.80
B) $61.80
C) $102.30
D) $164.10