1.Assuming no other use of their facilities, the highest price that Schmidt should be willing to pay for 10,000 units of the part is

a.$210,000.

b.$160,000.

c.$150,000.

d.$220,000.

e.$140,000.

Use the information below to answer the following question(s):

Spahr Company produces a part that is used in the manufacture of one of its products. The unit manufacturing costs of this part, assuming a production level of 5,000 units, are as follows:

Direct materials

$2.00

Direct labour

$4.00

Variable manufacturing overhead

2.00

Fixed manufacturing overhead

$3.00

Total cost

$11.00

The fixed overhead costs are avoidable.