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The Drexton Company has a maximum production copocity of 65,000 uniss per year. For that capacity level, food costs are $370,000 per year. Varibie costs

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The Drexton Company has a maximum production copocity of 65,000 uniss per year. For that capacity level, food costs are $370,000 per year. Varibie costs per unt are $55. In the caming yea the company has orders for 69,500 units at $00. The company wants to make a minimum overali cperating income of $160,000 on these 69,500 units. Requirement What maximum unit purchase price would Droxton Compary be willing to pay to a subcontroctor for the additional 4,500 units it cannot manufacture itsel to earn an coerdeng incorre of 5160,000? Determine the maxiumum total cost to Drexton Company of producing the 69,500 units while earning an operatiog incoene of $160,060. Total costs to produce 69,500 units is

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