Ryce Corporation Is About to Announce a New Product, C72

question 11

Multiple Choice

Ryce Corporation is about to announce a new product, C72, whose variable cost is $118.70 per unit and that would require 9.40 grams of a raw material that is the constrained resource in the company. The opportunity cost to use this constrained resource is $60.00 per gram. What is the minimum acceptable selling price for the new product?

• A) $564.00
• B) $178.70
• C) $682.70
• D) $118.70

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