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Problem: Module 6 Textbook Problem 5 Learning Objective: 6-3 Make appropriate outsourcing decisions Thomton Company makes and sells lawn mowers for which it currently makes

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Problem: Module 6 Textbook Problem 5 Learning Objective: 6-3 Make appropriate outsourcing decisions Thomton 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, The equipment has a book value of $96,000 but its market value is zero. Required a. Determine the maximum price per unit that Thomton would be willing to pay for the engines. b. Determine the moximum price per unit that Thomton would be willing to poy for the engines, if production increased to 18,400 units. (For alf requirements, Pound your answers to 2 decimal places)

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