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Wehner Company is currently manufacturing Part ABS 43, producing 57,900 units annually. The part is...

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Accounting

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Wehner Company is currently manufacturing Part ABS 43, producing 57,900 units annually. The part is used in the production of several products made by Wehner. The cost per unit for ABS-43 is as follows: $46,25 Direct materials Direct labor Variable overhead 10.85 2.30 Fixed overhead Total $64.15 of the total fixed overhead assigned to ABS-43, 515,054 is direct fixed overhead (the annual lease cost of machinery used to manufacture Part ABS 43), and the remainder is common foxed overhead. An outside supplier has offered to sell the part to Wehner for $59.77. There is no alternative use for the facilities currently used to produce the part. No significant non-unit-based overhead costs are incurred. Required: 1. Should Wehner Company make or buy Part ABS-432 Wehner should the part. This will produce total cost savings of 2. What is the maximum amount per unit that Wehner would be willing to pay to an outside supplier? Round your answer to the nearest cent. per unit

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