search

# Tork Corporation is about to announce a new product, J82, whose vari

Content type
User Generated
Rating
Showing Page:
1/1
Tork Corporation is about to announce a new product, J82,
whose variable cost is \$116.30 per unit and that would
require 7.70 grams of a raw material that is the
constrained resource in the company. The opportunity cost
to use this constrained resource is \$54.00 per gram. What
is the minimum acceptable selling price for the new
product?
Solution
The price shoudl atleast cover variable cost and
opportunity cost of producing it.
Minimum price = 116.30 +(54 x 7.70)
= \$532.10

Unformatted Attachment Preview
Tork Corporation is about to announce a new product, J82, whose variable cost is \$116.30 per unit and that would require 7.70 grams of a raw material that is the constrained resource in the company. The opportunity cost to use this constrained resource is \$54.00 per gram. What is the minimum accepta ...
Purchase document to see full attachment
User generated content is uploaded by users for the purposes of learning and should be used following Studypool's honor code & terms of service.

Anonymous