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Pett Company Produces a Part That Is Used in the Manufacture

Question 47

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Pett Company produces a part that is used in the manufacture of one of its products. The costs associated with the production of 5,000 units of this part are as follows:
Pett Company produces a part that is used in the manufacture of one of its products. The costs associated with the production of 5,000 units of this part are as follows:    Of the fixed factory overhead costs, $15,000 is avoidable. -Assuming no other use of their facilities, the highest price that Pett should be willing to pay for 5,000 units of the part is A)  $105,000. B)  $70,000. C)  $85,000. D)  $60,000. Of the fixed factory overhead costs, $15,000 is avoidable.
-Assuming no other use of their facilities, the highest price that Pett should be willing to pay for 5,000 units of the part is


A) $105,000.
B) $70,000.
C) $85,000.
D) $60,000.

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