Question - Fird Company manufactures a part for its production cycle. The costs per unit for 10,000 units of this part are as follows:
Direct materials $20
Direct labor 15
Variable factory overhead 16
Fixed factory overhead 15
Total costs $66
The fixed factory overhead costs are unavoidable. Assuming no other use of their facilities, the highest price that Fird Company should be willing to pay for the part is _____.
A. $41
B. $35
C. $45
D. $51