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Walton 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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Walton 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 (13,700 Units X $13) Labor (13,700 Units $19) 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 13,700 engines $ 178,100 260,300 29,000 70,000 24,000 70,000 $631,400 *The equipment has a book value of $108,000 but its market value is zero Required a. Determine the maximum price per unit that Walton would be willing to pay for the engines. b. Determine the maximum price per unit that Walton would be willing to pay for the engines, if production increased to 18,950 units. (For all requirements, Round your answers to 2 decimal places.) a Maximum price per unit b. Maximum price per unit

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