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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 6100 units, are as follows: Direct materials $4.50 Direct labor $4.30 Variable manufacturing overhead $3.40 Fixed manufacturing overhead $1.40 Total cost $13.60 The fixed overhead costs are unavoidable. Assuming no other use for its facilities, what is the highest price per unit that Cruise Company should pay for the part? $8.80 $12.20 $5.90 $13.60
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