Answer the Following Questions Using the Information Below:
Piels Corporation

question 41

Multiple Choice

Answer the following questions using the information below:
Piels Corporation produces a part that is used in the manufacture of one of its products. The costs associated with the production of 10,000 units of this part are as follows:
$\begin{array}{lr}\text { Direct materials } & \$ 90,000 \\\text { Direct labor } & 130,000 \\\text { Variable factory overhead } & 60,000 \\\text { Fixed factory overhead } & 140,000 \\\quad \text { Total costs } & \$ 420,000\end{array}$ Of the fixed factory overhead costs, $60,000 is avoidable.
-Assuming no other use of their facilities,the highest price that Piels should be willing to pay for 10,000 units of the part is ________.

• A) $420,000
• B) $280,000
• C) $340,000
• D) $360,000

---

Definitions:

Resistance

A refusal to accept or comply with something; the attempt to prevent something by action or argument.

Adherence

The extent to which individuals stick to behaviors, guidelines, or treatments as recommended by healthcare providers or organizations.

Commitment

The psychological attachment or loyalty an individual feels towards an organization, cause, or goal, often reflected in willingness to invest effort and maintain membership.

Compliance

Adherence to laws, regulations, guidelines, and specifications relevant to an organization's operations.