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Perez 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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Perez 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 $20) Labor (13,400 Units * $16) Depreciation on manufacturing 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 $ 268,000 214, 400 34,000 66,000 16,000 87,000 $ 685.400 *The equipment has a book value of $103,000 but its market value is zero. Required a. Determine the maximum price per unit that Perez would be willing to pay for the engines b. Determine the maximum price per unit that Perez would be willing to pay for the engines, if production increased to 18,600 units. (For all requirements, Round your answers to 2 decimal places.) Answer is not complete $ Maximum price per unit Maximum price per un 21.203 b

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