Larsen Corporation Has Designed a New Product, J57, Whose Variable

question 68

Multiple Choice

Larsen Corporation has designed a new product, J57, whose variable cost is $61.80 per unit and that requires 3.30 minutes of the constrained resource. The opportunity cost is $31.00 per minute used of the constrained resource. What is the minimum acceptable selling price for the new product?

• A) $92.80
• B) $61.80
• C) $102.30
• D) $164.10

---

Definitions:

Cognitive Bias

An organized tendency to deviate from normal or logical thinking in making judgments, leading to conclusions about people and situations that are drawn illogically.

Balanced Scorecard Framework

A strategic planning and management system used to align business activities with the vision and strategy of the organization, improve internal and external communications, and monitor organizational performance.

Strategic Initiatives

Long-term plans or actions taken by a business to achieve its goals and improve its competitive position.

CSR Efforts

Initiatives taken by a company to assess and take responsibility for its effects on environmental and social well-being, often going beyond compliance and engaging in actions that further social good.