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Lasso Corporation manufactures a variety of appliances which all use Part B89. Currently, ...

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Accounting

Lasso Corporation manufactures a variety of appliances which all use Part B89. Currently,
Lasso manufactures Part B89 itself. It has been producing 9000 units of Part B89 annually.
The annual costs of producing Part B89 at the level of 9000 units include:
All of the fixed manufacturing overhead costs would continue whether Part B89 is made
internally or purchased from an outside supplier. Lasso has no alternative use for its
manufacturing facilities. Nadal Parts Company has offered to sell 9,000 units of Part B89 to
Lassof or $20.40 per unit. What is the highest price per unit that Lasso should be willing to
pay for the part?
A. $18.70
B. $15.70
C. $11.50
D. $7.30
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