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Bull Company manufactures a part for its production cycle. The costs per unit of this part are: direct material $3; direct labor $5; variable factory
Bull Company manufactures a part for its production cycle. The costs per unit of this part are: direct material $3; direct labor $5; variable factory overhead $4; and fixed factory overhead $2. The fixed factory overhead costs are unavoidable. Assuming no other use of the facilities, the highest price that Bull Company should pay for this part in a make-buy decision is: A. $12. B. $14. C. $8. D. $11.
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