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The Anderson Company has a maximum production capacity of 6 0 comma 0 0 0 units per year. For that capacity level, fixed costs are

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.
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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

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