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

question 63

Multiple Choice

Fontana Corporation's two products have the following characteristics: The constrained resource is a particular machine that is available for 9,800 minutes each month. Each unit of product S83E requires 16 minutes on this machine and each unit of product G29P requires 5 minutes on this machine.
-Up to how much should the company be willing to pay to obtain enough of the constrained resource to satisfy demand for the two existing products?

• A) $3.20 per minute
• B) $2.40 per minute
• C) $16.00 per minute
• D) $38.40 per minute