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The Braxton Company has a maximum production capacity of 35,000 units per year. For that capacity level, fixed costs are $310,000 per year Variable
The Braxton Company has a maximum production capacity of 35,000 units per year. For that capacity level, fixed costs are $310,000 per year Variable costs per unit are $60. In the coming year, the company has orders for 40,000 units at $85. The company wants to make a minimum overall operating income of $185,000 on these 40,000 units Requirement What maximum unit purchase price would Braxton Company be willing to pay to a subcontractor for the additional 5,000 units it cannot manufacture itself to earn an operating income of $185,000? Determine the maximum total cost to Braxton Company of producing the 40,000 units while earning an operating income of $185,000 Total costs to produce 40,000 units is Identify the total cost to Braxton Company to manufacture 35,000 units Total costs to manufacture 35,000 units Determine the maximum additional costs to purchase 5.000 units from a subcontractor that Braxton Company would pay in order to earn an operating income d$185,000 The additional costs to purchase 5,000 units from a subcontractor is What maximum unit purchase price would Braxton Company be willing to pay to a subcontractor for the additional 5,000 units it cannot manufacture itself to earn an operating income of $185,000? (Round your answer to the nearest cent) The maximum price per unit that can be paid to a subcontractor is
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