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 $36 per unit To evaluate thes offer, Tray Engines Ltd. has gathered the tollowing information relating to its own cost of producing the carburetor intemnally 2e,eee Units Per Unit per Year 260,e00 22e,e00 se,eee $ 13 $ Direct materials Direct labor Variable nanufacturing overhead Fixed manufacturing overhead, 11 4 128,000 6* traceable Fixed manufacturing overhead, 180,000 allocated $ 43 860,000 Total cost One-third supervisory salaries, two thirds depreciation of special equpment (no resale value) Required: 1. Assuming the company has no alternative use for the facilities that are now being used to produce the carburetors what would be the financial advantage (disadvantage) of buying 20,000 carburetors from the outside supplier? 2 Should the outside supplier's offer be accepted? 3. Suppose that if the carburetors were purchased, Troy Engines, Ltd, could use the freed capacity to launch a new product The segment margin of the new product would be $200,000 per year. Glven this new assumption, what would be the financial advantage (disadvantage) of buying 20,000 carburetors from the outside supplier