Striker 44 Corporation Produces a Part That Is Used in the Manufacture

question 22

Multiple Choice

Striker 44 Corporation produces a part that is used in the manufacture of one of its products. The costs associated with the production of 12,000 units of this part are as follows:

Of the fixed factory overhead costs, $58,000 is avoidable.
Assuming no other use of their facilities, the highest price that McMurphy should be willing to pay for 12,000 units of the part is ________.

• A) $408,000
• B) $273,000
• C) $331,000
• D) $351,000

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