Dally Company produces a part that is used in the manufacture of one of its products.The costs associated with the production of 5,000 units of this part are as follows: Of the fixed factory overhead costs,$72,000 are avoidable.Assuming there is no other use for the facilities.What is the highest price Dally Company should be willing to pay for 5,000 units of the part?
A)$288,000
B)$336,000
C)$408,000
D)$504,000

Question

Dally Company produces a part that is used in the manufacture of one of its products.The costs associated with the production of 5,000 units of this part are as follows:  Of the fixed factory overhead costs,$72,000 are avoidable.Assuming there is no other use for the facilities.What is the highest price Dally Company should be willing to pay for 5,000 units of the part?
A)$288,000 
B)$336,000 
C)$408,000 
D)$504,000

Quizplus · Accepted Answer

The Answer of Dally Company produces a part that is used in the manufacture of one of its products.The costs associated with the production of 5,000 units of this part are as follows:  Of the fixed factory overhead costs,$72,000 are avoidable.Assuming there is no other use for the facilities.What is the highest price Dally Company should be willing to pay for 5,000 units of the part?
A)$288,000 
B)$336,000 
C)$408,000 
D)$504,000

Dally Company Produces a Part That Is Used in the Manufacture