Troy Engines Ltd. manufactures a variety of engines for use in heavy equipment. The company usually produces all the necessary parts for its engines, including all the carburetors. An outside supplier has offered to produce and sell one type of carburetor to Troy Engines Ltd. for a cost of $35 per carburetor. To evaluate this offer, Troy Engines Ltd. has gathered the following information 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 (FMOH), traceable 90.000 Fixed manufacturing overhead (FMOH), allocated 135,000 Fixed selling costs, allocated 2 30.000 Total cost $44 $660,000 * One-third of the traceable FMOH 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 FMOH represents depreciation of special equipment. This equipment has no resale value and will be retained even if the product is outsourced. **Allocated FMOH and selling costs are corporate-level costs. The outsourcing decision is not expected to affect the total outflow on these accounts, over the decision's horizon. Answer the following questions. (Each of the following parts is independent of the other parts.)