8. Helax 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 Helax ltd. for a cost of $35 per unit. To evaluate this offer, Helax Lad gathered the following information relating to its own cost of producing the carburetors intentionally Per Particulars 15.000 Unit(S) Units per Year Direct Material 14 2.10,000 Direct Labor 10 1.50,000 Variable manufacturing overhead 45.000 Fixed manufacturing overhead, traceable 90,000 Fixed manufacturing overhead, allocated 1.35,000 Total cost *One-third supervisory salaries, two-thirds depreciation of special equipment Required: (a)If the company has no alternative use for the facilities that are now being used to produce the carburetors, should be the outside supplier's offer be accepted? Show all computation 9 42 (b)Suppose that if the carburetors were purchased, Helax ltd, 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 Helax ltd accept the offer to buy the carburetors for $35 per unit? Show all Computations