The

McNamara

Company has a maximum production capacity of

20,000

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

$280,000

per year. Variable costs per unit are

$30.

In the coming year, the company has orders for

24,000

units at

$50.

The company wants to make a minimum overall operating income of

$148,000

on these

24,000

units.

Total costs to produce 24,000 units is

$1,052,000

.

Identify the total cost to

McNamara

Company to manufacture

20,000

units.

Total costs to manufacture 20,000 units

.