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asap please Troy Engines manufactures a variety of engines for use in heavy equipment. The company has always produced all of the necessary parts for
asap please
Troy Engines 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 produce and sell one type of carburetor to Troy Engines for a cost of 332 per unit. To evaluate this otfer, Troy Engines has gathered the following information relating to its own cost of producing 15.000 urits of the carburetorinternally: "comprised of supervisar's salary, $30,000 per year, and a non-cancellable equipment lease, $60,000 per year The decision to continue producing or to buy the carburetors would have no effect on Troy's general overhead. If the companyaccepts the cutside supplier's offer. the supervisor's position would be etiminated. Should the suppler's offer be sccepted? Yes, because the 532 per unit purchase price is iess than the 542 per unit peoduction cost Yes, because the $32 per unit purchase price is less than the avoidable production cost per unit Yes, because the $32 per unit purchase price is less than the $33 per unit traceable production cost No, because the $32 per unit purchase price is geater than the avoidsble production cost pec unit Step by Step Solution
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