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

Wehner Company is currently manufacturing Part ABS$-43,$ producing $57,200$ 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:

Of the total fixed overhead assigned to ABS$-43,$ $$13,385$ is direct fixed overhead $($the annual lease cost of machinery used to manufacture Part ABS$-$

$,$ and the remainder is common fixed overhead. An outside supplier has offered to sell the part to Wehner for $$59\mathrm{.}18.$ There is no alternative use for

the facilities currently used to produce the part. No significant non$-$unit$-$based overhead costs are incurred.

Required:

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

Wehner should

the part. This will produce total cost savings of $

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.

$

per unit