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EXERCISE 12-3 Make or Buy a Component [L012-3] Troy Engines, Ltd, manufactures a variety of engines for use in heavy equipment. The company has always

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EXERCISE 12-3 Make or Buy a Component [L012-3] Troy Engines, Ltd, 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. A outside supplier has offered to sell one type of carburetor to Troy Engines, Ltd., for a cost of $35 per unit. To evaluate this offer, Troy Engines, Ltd., has gathered the following information relatin to its own cost of producing the carburetor internally

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