Question
Striker 33 Corporation produces a part that is used in the manufacture of one of its products. The costs associated with the production of 12,000
Striker 33 Corporation produces a part that is used in the manufacture of one of its products. The costs associated with the production of 12,000 units of this part are as follows: Direct materials 86,000 Direct labor 130,000 Variable factory overhead 57,000 Fixed factory overhead 135,000 Total costs 408,000 Of the fixed factory overhead costs, 63,000 is avoidable. Assuming no other use of their facilities, the highest price that McMurphy should be willing to pay to buy externally 12,000 units of the part is ________. 273,000 345,000 408,000 336,000
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