Saved 5. A company 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. An outside supplier has offered to sell one type of carburetor to the company for a cost of $35 per unit. To evaluate this offer, the compan has gathered the following information relating to its own cost of producing the carburetor internally: Help Save & E 29:37 Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead, traceable Fixed manufacturing overhead, allocated Total cost 20,000 Per Units Unit Per Year $ 17 $ 340,000 11 220,000 3 60,000 3* 60,000 6 120,000 $ 40 $ 800,000 One-third supervisory salaries, two-thirds depreciation of special equipment (no resale value) If the carburetors were purchased, the company could use the freed capacity to launch a new product. The segment margin of the new product would be $200,000 per year. What would be the financial advantage or disadvantage of buying 20,000 carburetors from the outside supplier? If disadvantage, place the number in parentheses (e g. (50000))