Find highest price that fird company should willing to pay

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Question - Fird Company manufactures a part for its production cycle. The costs per unit for 10,000 units of this part are as follows:

Direct materials $20

Direct labor 15

Variable factory overhead 16

Fixed factory overhead 15

Total costs $66

The fixed factory overhead costs are unavoidable. Assuming no other use of their facilities, the highest price that Fird Company should be willing to pay for the part is _____.

A. $41

B. $35

C. $45

D. $51

Reference no: EM131764978

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