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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

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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 (14,500 Units x $27) $391,500 377,000 41,000 70,000 24,000 89,000 Labor (14,500 Units x $26) 013027Depreciation 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 14,500 engines Prien $992, 500 eferences The equipment has a book value of $102,000 but its market value is zero Required a. Determine the maximum price per unit that Franklin would be willing to pay for the engines b. Determine the maximum price per unit thot Franklin would be willing to pay for the engines, if production increased to 18,150 units? (For all requirements, round your intermediate calculations and final answers to 2 decimal places

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