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Home Q & A Board Other Fields Homework Help Business Accounting
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bernie2981 bernie2981
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8 years ago
Cruise Company produces a part that is used in the manufacture of one of its products. The unit manufacturing costs of this part, assuming a production level of 6,000 units, are as follows:

Direct materials   $4.00
Direct labor   $4.00
Variable manufacturing overhead   $3.00
Fixed manufacturing overhead   $1.00
Total cost   $12.00
The fixed overhead costs are unavoidable.   

Assuming no other use for its facilities, what is the highest price per unit that Cruise Company should pay for the part?
A) $5
B) $8
C) $12
D) $11
Textbook 
Managerial Accounting

Managerial Accounting


Edition: 4th
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nucleinuclei
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8 years ago
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bernie2981 Author
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#2
8 years ago
You're such a dedicated member, I very much appreciate the help.

Marking this solved ✓
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