What the highest price that bull company should pay

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Question 1: Bull Company manufactures a part for its production cycle. The costs per unit of this part are: direct material $3; direct labor $5; variable factory overhead $4; and fixed factory overhead $2. The fixed factory overhead costs are unavoidable. Assuming no other use of the facilities, the highest price that Bull Company should pay for this part in a make-buy decision is:

A. $12.

B. $14.

C. $8.

D. $11.

Reference no: EM132496146

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