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Gibson 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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Gibson 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 (13,400 Units $24) Labor (13,400 Units$18) Depreciation on nanufacturing 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 13,400 engines 321,600 241,200 25,000 72,000 10,000 81,000 $ 750, 800 The equipment has a book value of $99,000 but its market value is zero. Required a. Determine the maximum price per unit that Gibson would be willing to pay for the engines b. Determine the maximum price per unit that Gibson would be willing to pay for the engines, if production increased to 17,900 units? (For all requirements, round your intermediate calculations and final answers to 2 decimal places.) price per unit

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