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. The equipment has a book value of $92,000 but its market value is zero. Required 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 17,750 units. Note: For all requirements, round intermediate and final answers to 2 decimal places
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