The Shoebottom Company has a maximum production capacity of 35,000 units per year. For that...
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The Shoebottom Company has a maximum production capacity of 35,000 units per year. For that capacity level, fixed costs are $340,000 per year. Variable costs per unit are $70. In the coming year, the company has orders for 39,000 units at $100. The company wants to make a minimum overall operating income of $150,000 on these 39,000 units. Requirement What maximum unit purchase price would Shoebottom Company be willing to pay to a subcontractor for the additional 4,000 units it cannot manufacture itself to earn an operating income of $150,000 ? (Round your answer to the nearest cent.) The maximum price per unit that can be paid to a subcontractor is
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