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 produce and sell one type of carburetor to Troy Engines Ltd. for a cost of $107.0 p nit. To evaluate this offer, Troy Engines Ltd. has gathered the following information relating to its own cost of producing the carburetor internally: Per 42,000 Units Unit per Year $ 23 $ 966,000 28 1,176,000 21 882,000 Fixed manufacturing overhead, traceable 33.0 1,386,000 Fixed manufacturing overhead, allocated 27 1,134,000 Direct materials Direct labour Variable manufacturing overhead Total cost $132.0 $5,544,000 *One-third supervisory salaries, two-thirds depreciation of special equipment (no resale value)