Titzer Corporation Is About to Announce a New Product, C02

question 35

Multiple Choice

Titzer Corporation is about to announce a new product, C02, whose variable cost is $134.80 per unit and that would require 5.90 grams of a raw material that is the constrained resource in the company. The opportunity cost to use this constrained resource is $68.00 per gram. What is the minimum acceptable selling price for the new product?

• A)$401.20
• B)$134.80
• C)$202.80
• D)$536.00

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