|Question 9.9. (TCO 5) Piels Corporation produces a part that is used in the manufacture of one of its products. The costs associated with the production of 10,000 units of this part are as follows.|
Direct materials $ 90,000
Direct labor 130,000
Variable factory overhead 60,000
Fixed factory overhead 140,000
Total costs $420,000Of the fixed factory overhead costs, $60,000 is avoidable.
Assuming no other use of their facilities, the highest price that Piels should be willing to pay for 10,000 units of the part is _____. (Points : 5)