The Zulu Company has a maximum production capacity of $55,000$ units per year. For that capacity level, fixed costs are $$380,000$ per year. Variable costs per unit are $$65.$ In the coming year, the company has orders for $60,500$ units at $$95.$ The company wants to make a minimum overall operating income of $$175,000$ on these $60,500$ units.

Requirement

What maximum unit purchase price would Zulu Company be willing to pay to a subcontractor for the additional $5,500$ units it cannot manufacture itself to earn an operating income of $$175,000?$

Determine the maxiumum total cost to Zulu Company of producing the $60,500$ units while earning an operating income of $$175,000.$

Total costs to produce $60,500$ units is

Identify the total cost to Zulu Company to manufacture $55,000$ units.

Total costs to manufacture $55,000$ units

Determine the maxiumum additional costs to purchase $5,500$ units from a subcontractor that Zulu Company would pay in order to earn an operating income of $$175,000.$

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

What maximum unit purchase price would Zulu Company be willing to pay to a subcontractor for the additional $5,500$ units it cannot manufacture itself to earn an operating income of $$175,000?($Round your answer to the nearest cent.$)$

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