Mcbee Products Inc

question 16

Multiple Choice

Mcbee Products Inc. makes two products-C38S and V81Z. Product C38S's selling price is $91.00 and its unit variable cost is $72.80. Product V81Z's selling price is $200.00 and its unit variable cost is $180.00. The monthly demand is 890 units for product C38S and 680 units for V81Z. The constrained resource is a particular machine that is available for 10,000 minutes each month. Each unit of product C38S requires 7 minutes on this machine and each unit of product V81Z requires 10 minutes on this machine.
-The company is considering launching a new product that would have a variable cost of $191.00 per unit and no avoidable fixed costs. It would require 4 minutes of the constrained resource. The absolute minimum acceptable selling price for the new product should be:

• A) $191.00
• B) $199.00
• C) $193.00
• D) $201.40

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Definitions:

Transitions

The process or period of changing from one state or condition to another in various aspects of life or systems.

Age Discrimination

Refers to the unfair treatment of people because of their age, usually targeting the elderly or younger adults in the workplace or society.

Prevalence

The proportion of a population found to be affected by a particular disease, condition, or phenomenon at a specific time.

Working in Adulthood

The phase of life characterized by engagement in employment or professional activities, typically to earn a living and contribute to society.