Problem: Module 6 Textbook Problem 5 Learning Objective: 6-3 Make appropriate 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. Cost of materials (14,700 Units $15) Labor (14,700 Units $28) 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 14,700 engines *The equipment has a book value of $99,000 but its market value is zero. Required $ 220,500 411,600 26,000 84,000 10,000 71,000 $ 823,100 a. 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 18,700 units. (For all requirements, Round your answers to 2 decimal places.) a. Maximum price per unit b. Maximum price per unit