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Solomon 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. *The equipment has a book value of $94,000 but its market value is zero. Required a. Determine the maximum price per unit that Solomon would be willing to pay for the engines. b. Determine the maximum price per unit that Solomon would be willing to pay for the engines, if production increased to 17,950 units. Note: For all requirements, round intermediate and final answers to 2 decimal places. Gibson Bicycle Manufacturing Company currently produces the handlebars used in manufacturing its bicycles, which are high-quality racing bikes with limited sales. Gibson produces and sells only 7,800 bikes each year. Due to the low volume of activity, Gibson is unable to obtain the economies of scale that larger producers achieve. For example, Gibson could buy the handlebars for $34 each: they cost $37 each to make. The following is a detailed breakdown of current production costs. After seeing these figures, Gibson's president remarked that it would be foolish for the company to continue to produce the handlebars at $37 each when it can buy them for $34 each. Required Caiculate the total relevant cost. Do you agree with the president's conclusion