Problem: Module 6 Textbook Problem 5 Learning Objective: 6-3 Make appropriate outsourcing decisions Franklin 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 $20) Labor (13,700 Units x $25) 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 "The equipment has a book value of $94,000 but its market value is zero. Required $ 274,000 342,500 39,000 67,000 18,000 81,000 $ 821,500 a. Determine the maximum price per unit that Franklin would be willing to pay for the engines b. Determine the maximum price per unit that Franklin would be willing to pay for the engines, if production increased to 18,300 units. (For all requirements, Round your answers to 2 decimal places.)