Exercise 6-11A Establishing price for an outsourcing decision LO 6-3 Baird 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 (14,000 Units $27) $ 378,000 Labor (14,000 Units $26) 364,000 Depreciation on manufacturing equipment* 35,000 Salary of supervisor of engine production 72,000 Rental cost of equipment used to make engines 26,000 Allocated portion of corporate-level facility-sustaining costs 89,000 Total cost to make 14,000 engines $ 964,000 *The equipment has a book value of $99,000 but its market value is zero. Required Determine the maximum price per unit that Baird would be willing to pay for the engines. Determine the maximum price per unit that Baird 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.)