Kleppe Corporation has two products that use the same constrained resource-a critical raw material. 
The total amount of the constrained resource available is 10,000 grams.
Required:
a. Which product is most profitable, given the company's constraint?
b. How much of each product should be produced?
c. What is the total contribution margin if your plan in part (b) above is followed?
d. The company is considering launching a new product whose variable cost is $106 and that requires 7 grams of the constrained resource. What is the minimum selling price for the new product?
Definitions:
Meningitis
An inflammation of the protective membranes covering the brain and spinal cord, a condition that can be caused by infection with viruses, bacteria, or other microorganisms.
Inflammation
A protective response by the body's immune system to injury or infection, characterized by redness, warmth, swelling, and pain.
Nerve Tract
A bundle of nerve fibers (axons) connecting different parts of the nervous system.
Sensation Loss
The partial or complete inability to sense stimuli, which can affect any part of the body and can be due to nerve damage or other conditions.
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