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

Problem: Module 6 Textbook Problem 5 Learning Objective: 6-3 Make oppropriate outsourcing decisions Thornton 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 $106,000 but its market value is zeto Required a. Deternine the maximum price per unit that Thornton would be willing to pay for the engines. b. Determine the moximum price per unit that Thornton would be willing to pay for the engines, if production increased to 18750 units. (For all tequirements, Round your answers to 2 decimal ploces.) The equipment has a book value of $106,000 but its market value is zero. Required o. Determine the maximum price per unit that Thornton would be willing to pay for the engines. b. Determine the maximum price per unit that Thornton would be willing to pay for the engines, if production increased to 18,750 (For oll requirements, Round your answers to 2 decimal places.)
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