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) |
$420,000 $280,000 $340,000 $360,000 |