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Cruise Company produces a part that is used in the manufacture of one of its products. The unit manufacturing costs of this part, assuming a
Cruise 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 6,500 units, are as follows: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Total cost The fixed overhead costs are unavoidable. $4.3 $4.5 $3.5 $1.1 $13.4 Assuming no other use for its facilities, what is the highest price per unit that Cruise Company should pat for the part? OA. $12.3. O B. $5.4 OC. $13.4 OD. $8.8
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