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Save Homework: Chapter Three-SP 21 Score: 0 of 1 pt 3 of 5 (0 complete) HW Score: 0%, 0 of 5 pts E3-26 (similar to)
Save Homework: Chapter Three-SP 21 Score: 0 of 1 pt 3 of 5 (0 complete) HW Score: 0%, 0 of 5 pts E3-26 (similar to) Question Help The Drexton Company has a maximum production capacity of 50.000 units per year For that capacity level, fixed costs are $350 000 per year Variable costs por unit are $50. In the coming year, the company has orders for 55,500 units at 75 The company wants to make a minimum overall operating income of $170,000 on these 55 500 units Requirement What maximum unit purchase price would Drexton Company be willing to pay to a subcontractor for the additional 5.500 units it carinot manufacture Htoolt to earn an operating income of $170,000 Determine the maximum total cost to Drexton Company of producing the 55,500 units while earning an operating income of $170,000 Total costs to produce 55 500 units is
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