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Those are the right answers, I just don't understand how to get them. Thanks! The Edwards Company has a maximum production capacity of 30,000 units
Those are the right answers, I just don't understand how to get them. Thanks!
The Edwards Company has a maximum production capacity of 30,000 units per year. For that capacity level, fixed costs are $300,000 per year. Variable costs per unit are $60. In the coming year, the company has orders for 34,000 units at $90. The company wants to make a minimum overall operating income of $165,000 on these 34,000 units. Requirement What maximum unit purchase price would Edwards Company be willing to pay to a subcontractor for the additional 4,000 units cannot manufacture itself to earn an operating income of $165,000? ... Determine the maxiumum total cost to Edwards Company of producing the 34,000 units while earning an operating income of $ 165,000. Total costs to produce 34,000 units is 2,895,000 Identify the total cost to Edwards Company to manufacture 30,000 units Total costs to manufacture 30.000 units $ 2,100,000 Determine the maxiumum additional costs to purchase 4,000 units from a subcontractor that Edwards Company would pay in order to earn an operating income of $165,000 The additional costs to purchase 4,000 units from a subcontractor is $ 795,000 cannot manufacture itself to earn an operating income of $165,000? (Round your answer to the nearest cent.) What maximum unit purchase price would Edwards Company be willing to pay to a subcontractor for the additional 4,000 units The maximum price per unit that can be paid to a subcontractor is $ 198.75Step by Step Solution
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