"The equipment has a book value of $96,000 but its market value is zero

Required

a. Determine the maximum price per unit that Finch would be willing to pay for the engines

b. Determine the maximum price per unit that Finch would be willing to pay for the engines, if production increased to 17,950 unit

Finch Company makes and sells lawn mowers for which it currently makes the engines. It has an opportunity to from a reliable manufacturer. The annual costs of making the engines are shown here. Cost of materials (14,000 Units X $17) Labor (14,000 Units * $17) 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 14,000 engines $ 238,000 238,000 34,000 77,000 22,000 75,000 $ 684,000 *The equipment has a book value of $96,000 but its market value is zero. Required a. Determine the maximum price per unit that Finch would be willing to pay for the engines. b. Determine the maximum price per unit that Finch would be willing to pay for the engines, if production increase (For all requirements, Round your answers to 2 decimal places.) a. Maximum price per unit b. Maximum price per unit