The

Edwards

Company has a maximum production capacity of

45,000

units per year. For that capacity level, fixed costs are

$350,000

per year. Variable costs per unit are

$65.

In the coming year, the company has orders for

50,500

units at

$85.

The company wants to make a minimum overall operating income of

$190,000

on these

50,500

units.

Requirement

What maximum unit purchase price would

Edwards

Company be willing to pay to a subcontractor for the additional

5,500

units it cannot manufacture itself to earn an operating income of

$190,000?

Determine the maxiumum total cost to

Edwards

Company of producing the

50,500

units while earning an operating income of

$190,000.

Total costs to produce 50,500 units is

.

Identify the total cost to

Edwards

Company to manufacture

45,000

units.

Total costs to manufacture 45,000 units

.

Determine the maxiumum additional costs to purchase

5,500

units from a subcontractor that

Edwards

Company would pay in order to earn an operating income of

$190,000.

The additional costs to purchase 5,500 units from a subcontractor is

.

What maximum unit purchase price would

Edwards

Company be willing to pay to a subcontractor for the additional

5,500

units it cannot manufacture itself to earn an operating income of

$190,000?

(Round your answer to the nearest cent.)

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

.