Chec Exercise 6-11A Establishing price for an outsourcing decision LO 6-3 Adams 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. t of materials (13,700 Units$23) Depreciation on manufacturing equipment Salary of su Rental cost of equipment used to make engines Allocated portion of corporate-level facility-sustaining costs Total cost to make 13,700 enginer $315,10o 205,500 32,000 79,000 10,000 71,000 712,600 r of engine production The equipment has a book value of $95,000 but its market value is zero. Required a. Determine the maximum price per unit that Adams would be wiling to pay for the engines b. Determine the maximum price per unit that Adams would be willing to pay for the engines, if production increased to 18,700 units? For all requirements, round your intermediate calculations and final answers to 2 decimal places.) K Prev 8 of 10 Next