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Troy Engines, Ltd . , manufactures a variety of engines for use in heavy equipment. The company has always produced all of the necessary parts
Troy Engines, Ltd
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, Ltd
for a cost of $
per unit. To evaluate this offer, Troy Engines, Ltd
has gathered the following information relating to its own cost of producing the carburetor internally:
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