Franklin 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 (13,600 Units $22) Labor (13,600 Units $16) 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 13,600 engines *The equipment has a book value of $104,000 but its market value is zero. Required $ 299,200 217,600 24,000 76,000 18,000 82,000 $ 716,800 a. Determine the maximum price per unit that Franklin would be willing to pay for the engines. b. Determine the maximum price per unit that Franklin would be willing to pay for the engines, if production increased to 17,950 units