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Lasso Corporation manufactures a variety of appliances which al use Part 389. Currently, Lasso manufactures Part 389 tset. It has been producing 9,000 units of
Lasso Corporation manufactures a variety of appliances which al use Part 389. Currently, Lasso manufactures Part 389 tset. It has been producing 9,000 units of Part 389 annually. The annual costs of producing Part 389 at the level of 9.000 units include: Direct materials $3.20 Direct labor $8.20 Variable manufacturing overhead 54.30 Fixed manufacturing overhead $3.50 Total cost $19.20 All of the fixed manufacturing overhead costs would continue whether Part 389 is made internally or purchased from an outside suppier. Lasso has no alternative use for its manufacturing facilities. Nadal Parts Company has offered to sell 9.000 units of Part 389 to Lassofor $20.50 per unit. What is the highest price per unit that Lasso should be willing to pay for the part? O A $11.40 OB $15.70 OC. $19.20 D$7.50
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