At what selling price for the Turbo X will the company be indifferent between continuing to manufacture the unit in-house and outsourcing the old unit and manufacturing the a new one?

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Reginald is the controller for Scoot Inc. Scoot makes mobility scooters for senior citizens who have difculty walking. Scoot has always manufactured the motors for its scooters inhouse; however, the marketing manager of Moto Industries has offered to sell motors to Scoot for $420 each. At the current level of demand of4,500 units. the cost to produce one motor is as follows: Unit oust. Direct materials $130 Direct labour 140 Manufacturing overhead (60% xed} 290 Total 3.559 Reginald has approached the company engineers with this proposal. They discussed the option of purchasing the motors from Moto and producing a new scooter called the Turbo X in the manufacturing space previously used to produce the motors. It is estimated that Scoot could sell 750 Turbo X scooters per year. The estimated costs to produce one unit of Turbo X are as follows: Llnil cost Direct materials $1 .000 Direct labour 780 Variable manufacturing costs 120 Additional fixed manufacturing costs 320 At what selling price for the Turbo X will Scoot be indifferent between continuing to manufacture the motors inhouse and outsourcing the motors and manufacturing the Turbo X