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The Fullerton Company has a maximum production capacity of 50,000 units per year. For that capacity level, fixed costs are $290,000 per year. Variable

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The Fullerton Company has a maximum production capacity of 50,000 units per year. For that capacity level, fixed costs are $290,000 per year. Variable costs per unit are $80. In the coming year, the company has orders for 55,000 units at $105. The company wants to make a minimum overall operating income of $170,000 on these 55,000 units. Requirement What maximum unit purchase price would Fullerton Company be willing to pay to a subcontractor for the additional 5,000 units it cannot manufacture itself to earn an operating income of $170,000? Determine the maxiumum total cost to Fullerton Company of producing the 55,000 units while earning an operating income of $170,000. Total costs to produce 55,000 units is $ 5,605,000 Identify the total cost to Fullerton Company to manufacture 50,000 units. Total costs to manufacture 50,000 units

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