Learning Objective: 6-3 Make appropriate outsourcing decisions Fanning 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 * $16) Labor (13,400 Units x $29) Depreciation on manufacturing equipment* Salary of supervisor of engine production $214,400 388,600 29,000 68,000 16,000 Allocated portion of corporate-level facility-sustaining costs 74,000 $790,000 Rental cost of equipment used to make engines Total cost to make 13,400 engines *The equipment has a book value of $93,000 but its market value is zero. Required a. Determine the maximum price per unit that Fanning would be willing to pay for the engines. b. Determine the maximum price per unit that Fanning would be willing to pay for the engines, if production increased to 18,150 units. (For all requirements, Round your answers to 2 decimal places.) a. Maximum price per unit b. Maximum price per unit $ 51.27