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2a. Suppose that if the carburetors were purchased, Troy Engines, Ltd., could use the freed capacity to launch a new product. The segment margin of

2a.

Suppose that if the carburetors were purchased, Troy Engines, Ltd., could use the freed capacity to launch a new product. The segment margin of the new product would be$150,000 per year. Compute the total cost of making and buying theparts.

Total relevent costs (15,000 units) Make and Buy

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