The Management of Bachor Corporation Has Provided the Following Data

question 51

Multiple Choice

The management of Bachor Corporation has provided the following data concerning its two products: The constrained resource is a particular machine that is available for 9,800 minutes each month.
-The company is considering launching a new product that would have a variable cost of $53.00 per unit.It would require 4 minutes of the constrained resource.The absolute minimum acceptable selling price for the new product should be:

• A)$59.40
• B)$53.00
• C)$96.20
• D)$78.60

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Definitions:

Financial Forecast

A prediction of future revenues, expenses, and profits of a company, used for budgeting and strategic planning.

Fixed Assets

Assets that are purchased for long-term use and are not likely to be converted quickly into cash, such as buildings, land, and machinery.

Pro Forma Financial Statements

Financial statements that project the financial position of a company, based on certain assumptions and typically used for future planning.

Sales Forecast

A sales forecast is the process of estimating future sales. Accurate sales forecasts enable companies to make informed business decisions and predict short-term and long-term performance.