The McGregor Company has a maximum production capacity of 55,000 units per year. For that capacity level, fixed costs are $340,000 per year. Variable costs per unit are $45. In the coming year, the company has orders for 59,500 units at $70. The company wants to make a minimum overall operating income of $170,000 on these 59,500 units. Requirement What maximum unit purchase price would McGregor Company be willing to pay to a subcontractor for the additional 4,500 units it cannot manufacture itself to earn an operating income of $170,000? Determine the maxiumum total cost to McGregor Company of producing the 59,500 units while earning an operating income of $170,000. Total costs to produce 59,500 units is $ 3,995,000. Identify the total cost to McGregor Company to manufacture 55,000 units. Total costs to manufacture 55,000 units