( 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