= Homework' Ch 3 Quiz

Homework: Ch 3 Quiz Question 1, E3-26 (similar to) Part 1 of 4 HW Score: 0%, O of 25 points O Points: O of 4 Save The Clayton Company has a maximum production capacity of 55,000 units per year. For that capacity level, fixed costs are $370,000 per year. Variable costs per unit are $35. In the coming year, the company has orders for 59,000 units at $55. The company wants to make a minimum overall operating income of $190,000 on these 59,000 units. Requirement What maximum unit purchase price would Clayton Company be willing to pay to a subcontractor for the additional 4,000 units it cannot manufacture itself to earn an operating income of $190,000? Determine the maxiumum total cost to Clayton Company of producing the 59,000 units while earning an operating income of $190,000. Total costs to produce 59,000 units is Help me solve this Etext pages Get more help A Clear all Check answer