s. Exoellent Engines, Ltd., manucmres a variety of engines for use in heavy equipment. The company 5 has always produced all of the necessary parts for its engines, including all of the carburetors. An outside supplier has o'ered to sell one type of carburetor to Excellent Engines, Ltd., for a cost of Tlr 35 per unit. To evaluate this om, Excellent Engines, Ltd, has gathered the following information relating to its own cost of producing the carburetor internally: _ ' ' .m m 'I 135.000 *Dnethird supervisory salaries; twothirds depreciation of special equipment (no resale value). Requirements: 1. Assuming that the company has no alternative use for the facilities that are now being used to produce the carburetors, should the outside supplier's offer be accepted? Show all computations. 2. Suppose that if the carburetors were purchased, Excellent Engines, Ltd., could use the freed capacity to launch a new product. The segment margin of the new product would be Tk 150,000 per year. Should Excellent Engines, Ltd, accept the o'er to buy the carburetors for Th 35 per unit? Show all computations