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f t Troy Engines, Ltd, manufactures a variety of engines for use in he carburetors. An outside supplier has offered to sell one type of

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f t Troy Engines, Ltd, manufactures a variety of engines for use in he carburetors. An outside supplier has offered to sell one type of carburetor to Troy Engines, Ltd., for a cost of $35 per unit. To information relating to its own cost of producing the carburetor internally vy equipment. The company has always produced all of the necessary parts for its engines, including all of the e evaluate this offe r, Troy Engines, Lid., has gathered the following 14,000 Units Por UnitPer Year Direct materials Direct labor Variable manufacturing averhead Fixed manufacturing overhead, traceable Foxed manufacturing overhead, allocated Total coet $9S 126,000 154,000 42,000 126,000 5463130.00 S 630,000 .40% supervisory salaries, 60% depreciation or special equipment (no resale value). Required 1a. Assuming that the compary nas no alternative use for the faciltes that are now being used to produce the carburetors, compute the total cost of making and buying the parts. (Round your Fixced manufacturing overmed per unit rate to 2 decimals) Total relevant cost (14,000 unts) 1b. Should the outside suppher's offer be accepted? O Reject MacBook Pro 8 9 5 6 3 4 b. Should the outside supplier's offer be accepted? OAccept O Rejedt Troy Engines Ltd., could use the freed capacity to launch a new product. The segment margin of the new product would be $126,600 per yeat Compue the colel cost of making and boing e Round your Fland manufactuning overad per una rats to 2 dacimals.) Total relevant cost (14,000 units) 2b. Should Troy Engines, Lid. accept the otfer to buy the carburetons for $35 per unin? Reject Accept Hints ReferenceseBook& Resources Hint 1 6 MacBook Pro 5 6 7 4

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