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5 Problem: Module 6 Textbook Problem 5 points completed so far. It do 02:30:39 Learning Objective: 6-3 Make appropriate outsourcing decisions Zachary Company makes
5 Problem: Module 6 Textbook Problem 5 points completed so far. It do 02:30:39 Learning Objective: 6-3 Make appropriate outsourcing decisions Zachary 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 (14,500 Units $17) Labor (14,500 Units $28) 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 14,500 engines "The equipment has a book value of $95,000 but its market value is zero. Required $ 246,500 406,000 30,000 67,000 13,000 78,000 $ 840,500 a. Determine the maximum price per unit that Zachary would be willing to pay for the engines. b. Determine the maximum price per unit that Zachary would be willing to pay for the engines, if production increased to 19,000 units. (For all re-uirements, Round your answers to 2 decimal places.) Answer is complete but not entirely correct. a Maximum price per unit 61.62 b. Maximum price per unit 61.61
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