3 Exercise 12-3 Make or Buy a Component LO12-3 Troy Engines, Ltd., manufactures a variety of engines for use in heavy equipment. The company has always produced all of the necessary parts for its engines, including all of the carburetors. An outside supplier has offered to sell one type of carburetor to Troy Engines, Ltd., for a cost of $31 per unit. To evaluate this offer, Troy Engines, Ltd., has gathered the following information relating to its own cost of producing the carburetor internally points 14,200 Per Units eBook Unit Per Year Direct materials Direct labor Variable manufacturing overhead $ 9 $127800 Hint 156,200 2 28.400 Fixed manufacturing overhead, traceable 85,200 Fixed manufacturing overhead, allocated 3 184,600 Print $ 41 s 582.200 Total cost References *40% supervisory salaries: 60% depreciation of special equipment(no resale value). Required: 1a. Assuming that the company has no alternative use for the facilities tha are novw being used to produce the carburetors, compute the total cost of making and buying the parts. (Round your Fixed manufacturing overhead per unit rate to 2 decimals.) Make Total relevant cost (14,200 units) 1b. Should the outside supplier's offer be accepted? Reject Accept 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 $110,720 per year. Compute the total cost of making and buying the parts. Round your Fixed manufacturing overhead per unit rate to 2 decimals.) 3.5 points Make Buy Total relevant cost (14,200 units) eBook Hint Print References 2b. Should Troy Engines, Ltd., accept the offer to buy the carburetors for $31 per unit? O Reject Accept