The Anderson Company has a maximum production capacity of 25,000 units per year. For that capacitylevel, fixed costs are $290,000 per year. Variable costs per unit are $45. In the comingyear, the company has orders for 29,500 units at $80. The company wants to make a minimum overall operating income of $185,000 on these 29,500 units.

Requirement

What maximum unit purchase price would Anderson Company be willing to pay to a subcontractor for the additional 4,500 units it cannot manufacture itself to earn an operating income of $185,000?

Determine the maxiumum total cost to Anderson Company of producing the 29,500 units while earning an operating income of $185,000.

Total costs to produce 29,500 units is

.

Identify the total cost to Anderson Company to manufacture 25,000 units.

Total costs to manufacture 25,000 units

.

Determine the maxiumum additional costs to purchase 4,500 units from a subcontractor that Anderson Company would pay in order to earn an operating income of $185,000.

The additional costs to purchase 4,500 units from a subcontractor is

.

What maximum unit purchase price would Anderson Company be willing to pay to a subcontractor for the additional 4,500 units it cannot manufacture itself to earn an operating income of $185,000? (Round your answer to the nearestcent.)

The maximum price per unit that can be paid to a subcontractor is

.