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:

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 ________.
A)$408,000
B)$273,000
C)$331,000
D)$351,000

Question

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:

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 ________.
A)$408,000 
B)$273,000 
C)$331,000 
D)$351,000

Quizplus · Accepted Answer

$86,000 + $130,000 + $57,000 + $58,000 = $331,000

Striker 44 Corporation Produces a Part That Is Used in the Manufacture