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: 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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Definitions:

Power Assertion

A disciplinary method involving the use of authority or physical force to control or correct behavior.

Differential Susceptibility

Some physiological makeups can make an individual more likely to be affected by environmental influences than other people. For example, a child with a highly reactive temperament might be benefited more than other children by positive parenting but harmed more than others by negative parenting.

Temperaments

Inherent traits of a person's personality that influence their behavior and emotional reactions from a young age.

Parenting Strategies

Techniques or methods adopted by parents in the upbringing of their children to foster growth, discipline, and education.