Barker Company Produces a Part That Is Used in the Manufacture

Multiple Choice

Barker 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, $60,000 is avoidable.
-Assuming no other use of their facilities, the highest price that Barker should be willing to pay for 5,000 units of the part is

A) $420,000.
B) $280,000.
C) $340,000.
D) $240,000.