The constraint at Angstadt Inc. is a key raw material. A total of 9,700 ounces of this constrained resource are available. Data concerning the company's two products, B03 and P22, appear below: 
Each unit of product B03 requires 6 ounces of the constrained raw material; each unit of product P22 requires 2 ounces.
Required:
a. In the present circumstances, which product is most profitable?
b. How much of each product should be produced?
c. The company is considering launching a new product whose variable cost is $158 and that requires 14 ounces of the constrained resource. What is the minimum acceptable selling price for the new product?
Definitions:
Total Asset Turnover Ratio
A financial ratio that measures a company's ability to generate sales from its assets by comparing net sales to average total assets.
Net Profit Margin Ratio
A financial metric that shows the percentage of a company's revenue that remains as profit after all operating expenses, interest, taxes, and preferred stock dividends have been deducted.
Property, Plant, and Equipment
Tangible assets that are held for use in the production or supply of goods or services, rental to others, or administrative purposes and are expected to be used during more than one period.
Classified Balance Sheet
A balance sheet that organizes a company’s assets, liabilities, and equity into subcategories for clearer understanding.
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