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

question 72

Multiple Choice

Demeester 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 Y56G requires 10 minutes on this machine and each unit of product K46X requires 3 minutes on this machine.
-The company is considering launching a new product that would have a variable cost of $79.00 per unit. It would require 14 minutes of the constrained resource. The absolute minimum acceptable selling price for the new product should be:

• A) $79.00
• B) $118.20
• C) $80.80
• D) $104.20

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Definitions:

Plantation Labor

Work associated with the operation of large agricultural estates, often involving the cultivation of crops like cotton, sugar, and tobacco, historically reliant on slave or indentured labor.

Rice Cultivation

The agricultural process of growing rice as a crop, significant in many parts of the world for food production and economic activity.

South Carolina

A state in the southeastern region of the United States, known for its role in the American Civil War and as a site of significant historical events and cultural heritage.

African Slaves

Individuals from Africa who were forcibly transported to the New World as part of the transatlantic slave trade and subjected to lifetime servitude.