4. (2313) Savoy Ltd manufactures a variety of engines for use in heavy equipment. The company has always produced all the necessary parts for its engines, including all the carburetors. An outside supplier has offered to sell one type of carburetor to Savoy ltd for a cost of $35 per unit. To evaluate this offer, Savoy ltd. gathered the following information relating to its own cost of producing the carburetors intentionally Particulars Per 15,000 Unit($) Units per Year Direct Material 14 2,10,000 Direct Labor 10 1,50,000 Variable manufacturing overhead 3 45,000 Fixed manufacturing overhead, traceable 6* 90,000 Fixed manufacturing overhead, allocated 9 1,35,000 Total cost 42 *One-third supervisory salaries; two-thirds depreciation of special equipment Required: (a) If the company has no alterative use for the facilities that are now being used to produce the carburetors, should the outside supplier's offer be accepted? Show all computation 6)Suppose that the carburetors were purchased, Savoy Itd., could use the freed capacity to launch a new product. The segment margin of the new product would be $1,50,000 per year. Should Savoy Itd. accept the offer to buy the carburetors for $35 per unit? Show all Computations