Bird Company manufactures a part for its production cycle.The costs per unit for 38,000 units of the part are as follows: The fixed factory overhead costs are unavoidable.Assume no other use for the facilities.What is the highest price Bird Company should pay for the part from an outside supplier?
A)$8
B)$11
C)$12
D)$16

Question

Bird Company manufactures a part for its production cycle.The costs per unit for 38,000 units of the part are as follows:  The fixed factory overhead costs are unavoidable.Assume no other use for the facilities.What is the highest price Bird Company should pay for the part from an outside supplier?
A)$8 
B)$11 
C)$12 
D)$16

Quizplus · Accepted Answer

The Answer of Bird Company manufactures a part for its production cycle.The costs per unit for 38,000 units of the part are as follows:  The fixed factory overhead costs are unavoidable.Assume no other use for the facilities.What is the highest price Bird Company should pay for the part from an outside supplier?
A)$8 
B)$11 
C)$12 
D)$16

Bird Company Manufactures a Part for Its Production Cycle