Cruise company produces a part that is used in the


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 be willing to pay for the? part?

Request for Solution File

Ask an Expert for Answer!!
Financial Accounting: Cruise company produces a part that is used in the
Reference No:- TGS01600573

Expected delivery within 24 Hours