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

---

Definitions:

Spinal Nerve

A nerve that emerges from the spinal cord and consists of both motor and sensory fibers, providing communication between the spinal cord and the body.

Central Canal

The fluid-filled space running longitudinally through the length of the entire spinal cord, containing cerebrospinal fluid.

Anesthesia

A medical procedure involving the administration of agents that result in a state of temporary loss of sensation or awareness.

Axillary Nerve

A nerve in the shoulder that innervates the deltoid and teres minor muscles as well as provides sensation to the skin.