Питання | Сторінка 113729

Davidson 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:

Direct materials $108,000

Direct labor 156,000

Variable factory overhead 70,000

Fixed factory overhead 168,000

Total costs $502,000

Of the fixed factory overhead costs, $72,000 are avoidable. Assuming there is no other use for the facilities. What is the highest price Davidson Company should be willing to pay for 5,000 units of the part?

$502,000

$334,000

$406,000

$264,000

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