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Dally Company Produces a Part That Is Used in the Manufacture

Question 144

Multiple Choice

Dally 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: Dally 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,$72,000 are avoidable.Assuming there is no other use for the facilities.What is the highest price Dally Company should be willing to pay for 5,000 units of the part? A) $288,000 B) $336,000 C) $408,000 D) $504,000 Of the fixed factory overhead costs,$72,000 are avoidable.Assuming there is no other use for the facilities.What is the highest price Dally Company should be willing to pay for 5,000 units of the part?


A) $288,000
B) $336,000
C) $408,000
D) $504,000

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