Bovee Company manufactures a part for its production cycle. The costs per unit for 10,000 units of this part are as follows:
The fixed factory overhead costs are unavoidable.
-Assuming no other use of their facilities, the highest price that Bovee should be willing to pay for the part is
A) $112.
B) $64.
C) $88.
D) $96.

Question

Bovee Company manufactures a part for its production cycle. The costs per unit for 10,000 units of this part are as follows:
  The fixed factory overhead costs are unavoidable.
-Assuming no other use of their facilities, the highest price that Bovee should be willing to pay for the part is
A) $112. 
B) $64. 
C) $88. 
D) $96.

Quizplus · Accepted Answer

The Answer of Bovee Company manufactures a part for its production cycle. The costs per unit for 10,000 units of this part are as follows:
  The fixed factory overhead costs are unavoidable.
-Assuming no other use of their facilities, the highest price that Bovee should be willing to pay for the part is
A) $112. 
B) $64. 
C) $88. 
D) $96.

Bovee Company Manufactures a Part for Its Production Cycle