Exercise 11-3 Make or Buy Decision [L011-3] to se relating to its own cost of producing the carburetor internally 10 196,000 ny has no alte 3. Su ngines, Ltd. for a cost o $34 per unit. To evaluate this offer, Troy Engines, Ltd. has g N-the following information relating o s own cost of producing the carburetor internally: Per Units Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead, traceable Fixed manufacturing overhead, allocated Total cost s16 $ 304,e90 10 190,000 38,000 9 171,000 12 228,890 s49 $ 931,0 One-third supervisory salaries; two-thirds depreciation of special equipment (no resale value) Required: 1. Assuming the company has no alternative use for the facilities that are now being used to produce the carburetors, what would be the financial advantage (disadvantage) of buying 19.000 carburetors from the outside supplier? 2. Should the outside supplier's offer be accepted? 3. Suppose that if the carburetors were purchased. Troy Engines, Ltd, could use the freed capacity to segment margin of the new product would be $190,000 per year. Given this new assumption, (disadvantage) of buying 19,000 carburetors from the outside supplier? 4. Given the new assumption in requirement 3, should the outside supplier's offer be accepted? launch a new product The s what would be the financial advantage nmnlate this question by entering your answers in the tabs below