Answer the following question(s) using the information below.Mable's Engine Company manufactures part Z92 used in several of its engine models.Monthly production costs for 1,000 units are as follows:
Mable's Engine Company has the option of purchasing the part from an outside supplier at $61 per unit.It is estimated that all of the fixed overhead costs assigned to Z92 will remain if the company purchases Z92 from the outside supplier.
-The maximum price that Mables's Engine Company should be willing to pay the outside supplier is
A) $43 per Z92 part.
B) $38 per Z92 part.
C) $61 per Z92 part.
D) $59 per Z92 part.
E) $64 per Z92 part.
Correct Answer:
Verified
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