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The Anderson Company has a maximum production capacity of 50,000 units per year. For that...

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Accounting

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The Anderson Company has a maximum production capacity of 50,000 units per year. For that capacity level fixed costs are $350,000 per year. Variable costs per unit are $7= $105. The company wants to make a minimum overall operating income of $170,000 on these 54,000 units. Requirement What maximum unt purchase price would Anderson Company be willing to pay to a subcontractor for the additional 4,000 units it cannot manufacture tself to earn an operating Determine the maximum total cost to Anderson Company of producing the 54,000 units while earning an operating income of $170,000 Total costs to produce 54,000 units iss 5,500,000 Identify the total cost to Anderson Company to manufacture 50,000 units Total costs to manufacture 50,000 units units per year. For that capacity tovel, fixed costs are $350,000 per year. Variable costs per unit are $75. In the coming year, the company has ceders for 54,000 units at of $170,000 on these 54.000 units. sy to pay to a subcontractor for the additional 4,000 units it cannot manufacture itself to earn an operating income of $170,0007 the 54,000 units while earning an operating income of $170,000

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