Troy Engines Ltd. manufactures a variety of engines for use in heavy equipment. The company usually produces all the necessaryr parts for its engines, including all the carburetors. An outside supplier has offered to produce and sell one type of carburetor to Troyr Engines Ltd. for a cost of $35 per carburetor. To evaluate this offer, Troy Engines Ltd. has gathered the following infomration relating to its own cost of producing this carburetor internally: Per 15,000 Carburetors Carburetor per Year Direct materials (variable) $14 $210,000 Direct labor {variable} 10 150,000 Variable manufacturing overhead 3 45,000 Fixed manufacturing overhead (FMDII}, traceable 6* 90,000 Fixed manufacturing overhead (FMDH), allocated 9'\" 13 5,000 xedsemgmlocaledZB Total cost $44 $560,000 '" Onethird of the traceable FMDH is supervisory salaries, a step cost. One supervisor is required for every 15,000 carburetors. The one supervisor now employed can be laid off if the product is outsourced. The remainder of the traceable FleDH represents depreciation of special equipment. This equipment has no resale value and will be retained even if the product is outsourced. '\"' Allocated FMDH and selling costs are corporatelevel costs. The outsourcing decision is not expected to affect the total outow on these accounts, over the dec'r sion's horizon Assume that the company has no alternative use for the facilities that are now being used to produce the carburetors. In the short run, what is the effect on profit if the outside supplier's offer is accepted? Show all computations.What is the maximum volume level at which Troy Engines Ltd. should outsource the carburetors (i.e., decide to buy)?Suppose that if the carburetors were purchased, Troy Engines Ltd. would decrease its short I'lll'l prots by {5160,0111} per month. However, the rm could use the freed-up capacity.r to launch a new product. [in a perunit basis, this new product would sell for $15 per unit but cost $14 per unit to make and sell. This cost of $14 per unit is made up of {i} the total inventoriable cost of $9 per unit, which includes allocated fixed manufacturing costs of $3 per unit, and (ii) total selling costs of $5 per unit, which includes fixed selling costs of $1 per unit. At what sales volume (for the new product) would it he profitable for Troy Engines Ltd. to purchase rather than make the carburetors":I Show all computations