( TCO 5 ) The theory of constraints is used for cost analysis when 8 . Question :
( 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 :