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

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Definitions:

Digestive System

The group of organs responsible for the breakdown and absorption of food and nutrients, and the elimination of waste.

Calcium Deposits

Mineral build-up in body tissues, which can lead to various conditions depending on their location.

Iron Deposits

Accumulations of iron in the body, which may occur in various tissues and organs, possibly leading to health issues.

Synovial Fluid

A viscous fluid found in the cavities of synovial joints that reduces friction between the articular cartilage during movement.