Dimuzio Corporation Has Designed a New Product, V06, Whose Variable

question 5

Essay

Dimuzio Corporation has designed a new product, V06, whose variable cost is $145.30 per unit and that requires 5.00 minutes of the constrained resource. The opportunity cost is $70.00 per minute used of the constrained resource.
Required:
What advice would you give to the company concerning the price that should be charged for the new product V06?

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Definitions:

Nasal Passages

The channels within the nose that air passes through during breathing, involved in respiration and olfaction.

Sleep Apnea

Disorder in which the person stops breathing for 10 seconds or more.

REM Sleep

A sleep stage identified by rapid eye movement, during which most dreaming occurs, and characterized by high brain activity.

Paranoid

A state characterized by persistent, irrational fears or suspicions, often involving a perceived threat to oneself.