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Finch Company makes and sells lawn mowers for which it currently makes the engines. It has an opportunity to purchase the engines from a reliable

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Finch 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 (13,800 units * $14) Labor (13,800 Units X $23) Depreciation on manufacturing equipment 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 13,808 engines $ 193,200 317,400 37,000 84,000 30, een 88,000 $749,600 'The equipment has a book value of $108,000 but its market value is zero. Required a. Determine the maximum price per unit that Finch would be willing to pay for the engines, b. Determine the maximum price per unit that Finch would be willing to pay for the engines, if production increased to 18,000 units. (For all requirements, Round your answers to 2 decimal places.) Answer is complete but not entirely correct. Maximum price per unit Maximum price per unit $ S 54.32 50.28 D

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