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:

Assuming no other use for its facilities,what is the highest price per unit that Cruise Company should pay for the part?

Question

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:

Assuming no other use for its facilities,what is the highest price per unit that Cruise Company should pay for the part?

Quizplus · Accepted Answer

B)
Cost to produce:
Direct Materials $4.00
Direct Labor 4.00
Var.mfg.3.00
Total Cost to build 11.00

Cruise Company Produces a Part That Is Used in the Manufacture