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

question 30

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

---

Definitions:

Expectancy Theory

A psychological theory proposing that individuals are motivated to act in certain ways based on their expectations of outcomes and the attractiveness of those outcomes.

Incentive System

A business tool designed to motivate and reward employees to achieve higher levels of performance.

Performance Targets

Specific objectives set to measure and evaluate the efficiency, effectiveness, and productivity of an operation, project, or individual.

Call Centre

A centralized office used for receiving or transmitting a large volume of requests by telephone, often for customer service purposes.