Shorr Corporation's Two Products Have the Following Characteristics: the Constrained

question 17

Multiple Choice

Shorr Corporation's two products have the following characteristics: The constrained resource is a particular machine that is available for 9,900 minutes each month. Each unit of product U29D requires 16 minutes on this machine and each unit of product X43P requires 2 minutes on this machine.
-The company is considering launching a new product that would have a variable cost of $169.00 per unit and no avoidable fixed costs.It would require 15 minutes of the constrained resource.The absolute minimum acceptable selling price for the new product should be:

• A)$169.00
• B)$211.00
• C)$171.80
• D)$277.00

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Definitions:

Enforceable

Capable of being imposed or carried out by legal action or authority; describes a rule, contract, or law that can be legally upheld.

Bargained For

In contract law, referring to an exchange that parties agree upon, which forms the basis for a legally enforceable contract.

Promissory Estoppel

A legal principle that prevents a party from withdrawing a promise made to a second party if the latter has reasonably relied on that promise to their detriment.

Reasonable Amount

An amount that is fair and moderate, not excessive or extreme.