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company wants to make a minimum overall operating income of $ 1 5 5 , 0 0 0 on these 4 0 , 5 0
company wants to make a minimum overall operating income of $ on these units.
Requirement
What maximum unit purchase price would Clayton Company be willing to pay to a subcontractor for the additional units it cannot manufacture itself to earn an operating income of $
Determine the maxiumum total cost to Clayton Company of producing the units while earning an operating income of $
Total costs to produce units is
Identify the total cost to Clayton Company to manufacture units.
Total costs to manufacture units
Determine the maxiumum additional costs to purchase units from a subcontractor that Clayton Company would pay in order to earn an operating income of $
The additional costs to purchase units from a subcontractor is
The maximum price per unit that can be paid to a subcontractor is
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