Question 2. Y Compary manufactures small engines. The engines are soid to manufacturers who instal them in such products as lawn mowers. The company currently manufactures al the parts used in these engines but is considering a proposal from an external supplier who wishes to supply the starter assemblies used in these engines. The starter assemblios are currently manufactured in Division 3 of Y Company. Over the past year, Division 3 Page 1/3 manufactured 150.000 starter assembles. The costs relating to the starter assembles for the past 12 months were as follows: Further analysts of manufacturing orerhead revealed the following information. Of the total manufacturing overhead, only 25% is considered variable. Of the fiwed portion, 150.0005 is an alocation of general overhead that will remain unchanged for the compamy as a whole if production of the starter assembses is discontinued. A further 100.0005 of the fined averhead is avoidabie if production of the starter assemblies is discontinued. The balance of the current fived overhead, 50.000$, is the division manager's salary. If production of the starter assemblies is discontinued, the manager of Division 3 will be transfierred to Division 2 at the same salary. This move wal allow the company to save the 40.000$ salary that would otherwise be paid to attract an outsider to this position. T Electronics, a reliable supplier, has affered to supply starter-zssembly units at 4$ per unit. On the basis of tinancial considerations alone, should the outside offer be accepted? Present the data in relevant data fonmats. Show your calculations (40p). (hive Priductiov autput in the coming wav mby be alfferent fram productian outpot in the pant year)