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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 for its

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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 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 $35 per unit. To evaluate this offer, Troy Engines, Ltd., has gathered the following information relating to its own cost of producing the carburetor internally: 15,000 units per Per unit year 14 210,000 10 150,000 3 45,000 Direct Materials Direct Labor Variable manufacturing overhead Fixed manufacturing overhead, traceable Fixed manufacturing overhead, allocated total cost 6 90,000 135,000 630,000 42 one-third supervisory salaries; two-thirds depreciation of special equipment (no resale value) Suppose that if the carburetors were purchased, Troy Engines, Lid., could use the freed capacity to launch a new product. The segment margin of the new product would be $150,000 per year. What now is the TOTAL RELEVANT cost to make the carburetors (NOT per unit but total)? Be sure to include all relevant costs

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