The Gregoire Company has a maximum production capacity of 45,000 units per year. For that capacity...
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The Gregoire Company has a maximum production capacity of 45,000 units per year. For that capacity level, fixed costs are $290,000 per year. Variable costs per unit are $75. In the coming year, the company has orders for 49,500 units at $100. The company wants to make a minimum overall operating income of $170,000 on these 49,500 units. Req...rement What maximum unit purchase price would Gregoire Company be willing to pay to a subcontractor for the additional 4,500 units it cannot manufacture itself to earn an operating income of $170,000? Determine the maxiumum total cost to Gregoire Company of producing the 49,500 units while earning an operating income of $170,000. Total costs to produce 49,500 units is The Gregoire Company has a maximum production capacity of 45,000 units per year. For that capacity level, fixed costs are $290,000 per year. Variable costs per unit are $75. In the coming year, the company has orders for 49,500 units at $100. The company wants to make a minimum overall operating income of $170,000 on these 49,500 units. Req...rement What maximum unit purchase price would Gregoire Company be willing to pay to a subcontractor for the additional 4,500 units it cannot manufacture itself to earn an operating income of $170,000? Determine the maxiumum total cost to Gregoire Company of producing the 49,500 units while earning an operating income of $170,000. Total costs to produce 49,500 units is
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Related Book For
Engineering Economy
ISBN: 978-0132554909
15th edition
Authors: William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
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