Make$-$or$-$Buy, Traditional Analysis

Wehner Company is currently manufacturing Part ABS$-43,$ producing $53,800$ units annually. The part is used in the production of several products made by Wehner. The cost per unit for ABS$-43$ is as follows:

Direct materials $$42\mathrm{.}70$

Direct labor $8\mathrm{.}85$

Variable overhead $3\mathrm{.}20$

Fixed overhead $4\mathrm{.}75$

Total $$59\mathrm{.}50$

Of the total fixed overhead assigned to ABS$-43,$ $$14,687$ is direct fixed overhead $($the annual lease cost of machinery used to manufacture Part ABS$-43),$ and the remainder is common fixed overhead. An outside supplier has offered to sell the part to Wehner for $$54\mathrm{.}62.$ There is no alternative use for the facilities currently used to produce the part. No significant non$-$unit$-$based overhead costs are incurred.

Required:

$1.$ Should Wehner Company make or buy Part ABS$-43?$

Wehner should

buy

the part. This will produce total cost savings of $fill in the blank $2$

$.$

$2.$ What is the maximum amount per unit that Wehner would be willing to pay to an outside supplier? Round your answer to the nearest cent.

$fill in the blank $3$

per unit