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Author Question: Striker 44 Corporation produces a part that is used in the manufacture of one of its products. The ... (Read 57 times)

shofmannx20

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Striker 44 Corporation produces a part that is used in the manufacture of one of its products. The costs associated with the production of 12,000 units of this part are as follows:

Direct materials$86,000
Direct labor130,000
Variable factory overhead57,000
Fixed factory overhead135,000
Total costs$408,000

Of the fixed factory overhead costs, $58,000 is avoidable.

Assuming no other use of their facilities, the highest price that McMurphy should be willing to pay for 12,000 units of the part is ________.
◦ $408,000
◦ $273,000
◦ $331,000
◦ $351,000


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Marked as best answer by shofmannx20 on Mar 6, 2021

enass

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shofmannx20

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Reply 2 on: Mar 6, 2021
YES! Correct, THANKS for helping me on my review


flexer1n1

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Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

 

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