Problem: Module 6 Textbook Problem 5 Learning Objective: 6-3 Make appropriate outsourcing decisions Perez 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 (14,000 Units x $18) Labor (14,000 Units x $22) 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 *The equipment has a book value of $106,000 but its market value is zero. Required $ 252,000 308,000 40,000 69,000 15,000 86,000 $ 770,000 a. Determine the maximum price per unit that Perez would be willing to pay for the engines. b. Determine the maximum price per unit that Perez would be willing to pay for the engines, if production increased to 18,750 units. (For all requirements, Round your answers to 2 decimal places.) a. Maximum price per unit b. Maximum price per unit Check my