Fird Company Manufactures a Part for Its Production Cycle The Fixed Factory Overhead Costs Are Unavoidable

question 51

Multiple Choice

Fird Company manufactures a part for its production cycle.The costs per unit for 10,000 units of this part are as follows: $\begin{array}{lr}\text { Direct materials } & \$ 20 \\\text { Directlabor } & 15 \\\text { Variable factory overhead } & 16 \\\text { Fixed factory overhead } & 15 \\\text { Total costs } & \$ 66\end{array}$ The fixed factory overhead costs are unavoidable.Assuming no other use of their facilities, the highest price that Fird Company should be willing to pay for the part is _____.

• A)$41
• B)$35
• C)$45
• D)$51

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Definitions:

Organizations

Entities structured for a specific purpose, often involving a collective of individuals working towards common objectives.

Environmental Consequences

The positive or negative effects that human actions have on the natural environment, including impacts on air, water, and soil quality.

Corporate Social Responsibility

A business approach that involves participating in initiatives that benefit society.

Economic Recovery

The process through which an economy regains and exceeds the level of growth and activity it had before experiencing a downturn or recession.