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Morgan Corporation produces a part that is used in the manufacture of one of its products. The costs associated with the production of 15,000 units

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Morgan Corporation produces a part that is used in the manufacture of one of its products. The costs associated with the production of 15,000 units of this part are as follows: Direct materials $89,000 Direct labor 127,000 Variable factory overhead 58,000 Fixed factory overhead 135,000 Total costs $409,000 of the fixed factory overhead costs, $57,000 is avoidable. Assuming no other use of their facilities, the highest price that Morgan should be willing to pay for 15,000 units of the part is Select one: A. $274,000 B. $409,000 C. $351,000 D. $331,000

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