The Anderson Company has a maximum production capacity of $60$ comma $000$ units per year. For that capacity$$ level, fixed costs are $ $350$ comma $000$ per year. Variable costs per unit are $ $45.$ In the coming$$ year, the company has orders for $65$ comma $500$ units at $ $75.$ The company wants to make a minimum overall operating income of $ $165$ comma $000$ on these $65$ comma $500$ units.

Requirement

What maximum unit purchase price would Anderson Company be willing to pay to a subcontractor for the additional $5$ comma $500$ units it cannot manufacture itself to earn an operating income of $ $165$ comma $000?$

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Part $1$

Determine the maxiumum total cost to Anderson Company of producing the $65$ comma $500$ units while earning an operating income of $ $165$ comma $000.$

Total costs to produce $65,500$ units is