3 28 ints Exercise 6-11A (Static) Establishing price for an outsourcing decision LO 6-3 Levesque Company makes and sells lawn mowers for which it currently makes the engines. It has an opportunity to purchase the engines from a reliable manufacturer. The annual costs of making the engines are shown here. Cost of materials (20,000 Units $26) Labor (20,000 Units $20) $520,000 400,000 Depreciation on manufacturing equipment* 42,000 Salary of supervisor of engine production Rental cost of equipment used to make engines 85,000 23,000 Allocated portion of corporate-level facility-sustaining costs 80,000 $1,150,000 Total cost to make 20,000 engines *The equipment has a book value of $90,000 but its market value is zero. Required a. Determine the maximum price per unit that Levesque would be willing to pay for the engines. b. Determine the maximum price per unit that Levesque would be willing to pay for the engines, if production increased to 24,000 units. (For all requirements, Round your answers to 2 decimal places.) Answer is complete but not entirely correct. a. Maximum price per unit $ 51.40 b. Maximum price per unit $ 55.50 X