( TCO 5 ) Schmidt Corporation produces a part that is used in the manufacture of one of its products . The costs associated with the production of 10,000 units of this part are as follows : Direct materials $ 45,000 Direct labor 65,000 Variable factory overhead 30,000 Fixed factory overhead 70,000 Total costs $ 210,000 Of the fixed factory overhead costs , $ 30,000 is avoidable . Phil Company has offered to sell 10,000 units of the same part to Schmidt Corporation for $ 18 per unit . Assuming there is no other use for the facilities , Schmidt should 9 . Question : ( TCO 3 ) The cost function + 10X 10 . Question : ( TCO 4 ) Sunk costs 1 . Question : ( TCO 1 ) For each of the following drivers identify an appropriate activity . a . # of machines b . # of setups c . # of inspections d . # of orders e . # of runs f . # of bins or aisles g . # of engineers 2 . Question : ( TCO 2 ) Favata Company has the following information : Month Budgeted Sales June $ 60,000 July 51,000