Fird Company manufactures a part for its production cycle. The unit costs for 10,000 units of this
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Question:
Fird Company manufactures a part for its production cycle. The unit costs 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
Fixed factory overhead costs are unavoidable.
Assuming its facilities are not otherwise used, the highest price the Fird Company should be willing to pay for the part is _____.
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