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: Per Unit 14,600 Units Per Year Direct materials $ 9 $ 131,400 Direct labor 11 160,600 Variable manufacturing overhead 3 43,800 Fixed manufacturing overhead, traceable 9* 131,400 Fixed manufacturing overhead, allocated 13 189,800 Total cost $ 45 $ 657,000 *40% supervisory salaries; 60% depreciation of special equipment (no resale value).