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Benton Company manufactures a part for its production cycle. The costs per unit ...

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Benton Company manufactures a part for its production cycle. The costs per unit for 38,000 units of the part are as follows:

Per Unit

Direct materials $3.00

Direct labor 5.00

Variable factory overhead 3.00

Fixed factory overhead 4.00

Total costs $15.00

The fixed factory overhead costs are unavoidable. Assume no other use for the facilities. What is the highest price Benton Company should pay for the part from an outside supplier?
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