5. Exceptional Engines, Ltd., manufactures a variety of engines for use in heavy equipment. The 5 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 Exceptional Engines, Ltd., for a cost of Tk 36 per unit. To evaluate this offer, Exceptional Engines, Ltd., has gathered the following information relating to its own cost of producing the carburetor internally: Per Unit 15,000 Units per Year Direct materials Tk 14 Tk 210,000 Direct labor 10 150,000 Variable manufacturing overhead ..... 3 45,000 Fixed manufacturing overhead, traceable. 6* 90,000 Fixed manufacturing overhead, allocated. 9 135,000 Total cost .... Tk 42 Tk 630,000 *One-third supervisory salaries; two-thirds depreciation of special equipment (no resale value). Requirements: A) Assuming that the company has no alternative use for the facilities that are now being used to produce the carburetors, should the outside supplier's offer be accepted? Show all computations. B) Suppose that if the carburetors were purchased, Exceptional Engines, Ltd., could use the freed capacity to launch a new product. The segment margin of the new product would be Tk 150,000 per year. Should Exceptional Engines, Ltd., accept the offer to buy the carburetors for Tk 36 per unit? Show all computations