E13-11 (modified) Levesque 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 for $60 each. The annual costs of making the engines are shown here. Cost of materials (20,000 units x $26) Labor (20,000 units x $20) Depreciation on manufacturing 520,000 400,000 42,000 nt" 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 20,000 engines The equipment has a book value of $90,000 but is market value is zero. 85,000 23,000 80,000 $1,150,000 Required a. Should Levesque continue to make the engines? b. Levesque could lease the space currently used in the manufacturing process. If leasing would produce $300,000 per year, would your answer to requirement a be different