6) Time allowed: 20 minutes Engines Ltd manufactures a variety of engines for use in heavy equipment. se company has always produced all of the necessary parts for its engines, cluding all of the carburettory. An outside supplier has offered to produce nd sell one type of carburettor to Troy Engines for a cost of 35 per unit. To valuate this offer, Troy Engines has gathered the following information relating its own cost of producing the carburettor internally: Per unit 15,000 units per year 14 10 3 Direct materials Direct labour Variable manufacturing overhead Fixed manufacturing overhead, traceable Fixed manufacturing overhead, allocated Total cost 210,000 150,000 45,000 90,000 135,000 630,000 6 42 One-third supervisory salaries; two-thirds depreciation of special equipment (no resale value). Required 1 Assuming that the company has no alternative use for the facilities that are now being used to produce the carburettors, should the outside supplier's offer be accepted? Show all computations. Suppose that, if the carburettors were purchased, Troy Engines, could use the freed capacity to launch a new product. The segment margin of the new product would be 150,000 per year. Should Troy Engines Ltd. accept the offer to buy the carburettors for 35 per unit? Show all computations