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

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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

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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 ...
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