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Rimes Company makes and sells lawn mowers for which it currently makes the engines It has an opportunity to purchase the engines from a reliable
Rimes 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 (14.600 Units $29) $423.400 Labor (14.600 Units $15) 219.000 Depreciation on manufacturing equipment* 36.000 Salary of supervisor of engine production 78.000 Rental cost of equipment used to make engines 27.000 Allocated portion of corporate -level facility -sustaining costs 76,000 Total cost to make 14.600 engines $859.400 *The equipment has a book value of $99.000 but its market value is zero. Required a. Determine the maximum price per unit that Rimes would be willing to pay for the engines. (Round your answer to 2 decimal places.) per unit Rimes 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 (14.600 Units $29) $423.400 Labor (14.600 Units $15) 219.000 Depreciation on manufacturing equipment* 36.000 Salary of supervisor of engine production 78.000 Rental cost of equipment used to make engines 27.000 Allocated portion of corporate -level facility -sustaining costs 76,000 Total cost to make 14.600 engines $859.400 *The equipment has a book value of $99.000 but its market value is zero. Required a. Determine the maximum price per unit that Rimes would be willing to pay for the engines. (Round your answer to 2 decimal places.) per unit
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