Vanscoter Corporation Has Designed a New Product,R83,whose Variable Cost Is

question 57

Multiple Choice

Vanscoter Corporation has designed a new product,R83,whose variable cost is $86.60 per unit and that requires 3.10 minutes of the constrained resource.The opportunity cost is $38.00 per minute used of the constrained resource.What is the minimum acceptable selling price for the new product?

• A)$117.80
• B)$124.60
• C)$86.60
• D)$204.40

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Definitions:

Certified Cheque

A means of transferring funds by cheque where payment is, in effect, guaranteed by the bank.

Legal Tender

Officially recognized currency that can be used to settle debts, public charges, taxes, and dues.

Warranty Breach

Occurs when a product fails to meet the standards or conditions promised by a warranty, leading to potential legal redress.

Condition Subsequent

A condition in a contract that, when fulfilled, terminates an existing obligation under the contract.