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What is the highest price that ford company should pay

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Reference no: EM133006725

Problem - Ford Company manufactures a part for its production cycle. The costs per unit for 36 10,000 units of the part are as follows:

Direct materials $20.00

Direct labor 15.00

Variable factory overhead 16.00

Fixed factory overhead 15.00

Total costs $66.00

The fixed factory overhead costs are unavoidable. Assuming no other use for the facilities, what is the highest price that Ford Company should be willing to pay for the part?

Reference no: EM133006725

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