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4. Stuart Company makes and sells lawn mowers for which it currently makes the engines. It has an opportunity to purchase the engine from a

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4. Stuart Company makes and sells lawn mowers for which it currently makes the engines. It has an opportunity to purchase the engine from a reliable manufacturer. The annual costs of making the engines are shown here, Cost of materials (14,400 Units $15) Labor (14,400 Units 513) Depreciation on manufacturing equipment Salary of supervisor of engine production Rental cost of equipment used to make engines Allocated portion of corporate-level facility-sustaining costs Total cost to make 14,400 engine 5 216.000 187,200 29.000 65.000 13,000 72.000 $ 583,200 300 Ferenc *The equipment has a book value of $106,000 but its market value is zero. Required a. Determine the maximum price per unit that Stuart would be willing to pay for the engines. b. Determine the maximum price per unit that Stuart would be willing to pay for the engines, If production increased to 19,000 units, (For all requirements, Round your answers to 2 decimal places.) a. Maximum price per unit Maximum price per unit

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