Troy Engines, Limited, 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 Troy Engines, Limited, for a cost of $35 per unit. To evaluate this offer, Troy Engines, Limited, has gathered the following information relating to its own cost of producing the carburetor internally: 3 16,000 Units Per Unit per Year Direct materials $ 16 $ 256,000 Direct labor 12 192,000 Variable manufacturing overhead 48,000 Fixed manufacturing overhead, traceable 3* 48,000 Fixed manufacturing overhead, allocated 96,000 Total cost $ 40 $ 640,000 *One-third avoidable supervisory salaries; two-thirds depreciation of special equipment (no resale value). 6 Required: 1. Assuming the company has no alternative use for the facilities that are now being used to produce the carburetors, what would be the total financial impact of buying 16,000 carburetors from the outside supplier? (Indicate negative cash flows with a negative sign.) 2. Should the outside supplier's offer be accepted? 3. Suppose that if the carburetors were purchased, Troy Engines, Limited, could use the freed capacity to launch a new product. The segment margin of the new product would be $160,000 per year. (Assume that the carburetor supervisor would still not keep their job.) Given this new assumption, what would be the total financial impact of buying 16,000 carburetors from the outside supplier? 4. Given the new assumption in requirement 3, should the outside supplier's offer be accepted