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 type of carburetor Troy s36 per unit. To producing this offer, Troy Engines, Ltd., has gathered the following information relating to own cost of the carburetor internally its Per Units Unit Per Year Direct materials 9 $136,800 Direct labor 11 167,200 Variable manufacturing overhead 4 60,800 Fixed manufacturing overhead, traceable 9' 136,800 Fixed manufacturing overhead, allocated 13 197,600 Total cost 46 $699,200 "40% supervisory salaries; 60% depreciation of special equipment (no resale value). Required: 1a. Assuming that the company has no alternative use for the facilities that are now being used to produce the carburetors, compute the total cost of making and buying the parts. (Round your Fixed manufacturing overhead per unit rate to 2 decimals.) Total relevant cost (15,200 units) 699,200 547,200 1b. Should the outside supplier's offer be accepted? O Reject Accept