Problem: Module 6 Textbook Problem 5 Learning Objective: 6-3 Make appropriate outsourcing decisions Fanning 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 x $27) Labor (14,600 Units x $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 14,600 engines "The equipment has a book value of $96,000 but its market value is zero. Required $ 394,200 277,400 40,000 68,000 27,000 74,000 $ 880,600 a. Determine the maximum price per unit that Fanning would be willing to pay for the engines. b. Determine the maximum price per unit that Fanning 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