Schmidt Corporation produces a part that is used in the manufacture of one of its products. The costs associated with the production of 10,000 units of this part are as follows:

Direct materials $ 45,000

Direct labor 65,000

Variable factory overhead 30,000

Fixed factory overhead 70,000

Total costs $210,000

Of the fixed factory overhead costs, $30,000 is avoidable.

Assuming no other use of their facilities, the highest price that Schmidt should be willing to pay for 10,000 units of the part is:

	a.	$210,000
	b.	$140,000
	c.	$170,000
	d.	$180,000