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Hanson, Inc. makes 1,000 units per year of a part called a prositron for use in one of its products. Data concerning the unit production

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Hanson, Inc. makes 1,000 units per year of a part called a prositron for use in one of its products. Data concerning the unit production costs of the prositron follow: $349.64 $88.26 $53.93 $504.53 Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead An outside supplier has offered to sell Hanson, Inc. all of the prositrons it requires. If Hanson, Inc. decided to discontinue making the prositrons, 20% of the above fixed manufacturing overhead costs could be avoided. Assume that Hanson, Inc. could use the facilities presently devoted to production of the prositrons to expand production of negatrons that would yield an additional contribution margin of $47,000 annually. What is the maximum price per unit Hanson, Inc. should be willing to pay the outside supplier for prositrons

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