value 15.00 points Exerclse 12-3 Make or Buy a Component [L012-3] 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 $30 per unit. To evaluate this offer, Troy Engines, Ltd, has gathered the following information relating to its own cost of producing the carburetor intemally Direct materials Direct labor Variable manufacturing overhead Foed manufacturing overhead, traceable Fixed manufacturing overhead, allacated 14,700 Per Units Unit Per Year S 9 $132,300 11 161, 700 1 14,700 6 88,200 13 191,100 Total cost $40 $588,000 40% supervisory salaries 60% depreciation of special equipment ino resale value) Required: 1a Assuming that the company has no alternative use for the facilities that are now being used to produce the carburetors, compute the total cost of making and buying the parts. (Round your Fixed manufacturing overhead per unit rate to 2 decimals.) Total relevant cost (14 700 units) 1b Should the outside supplier's offer be accepted? Reject 2a Suppose that if the carburetors were purchased, Troy Engines, Ltd, could use the freed capacity to launch a new product The segment margn ot the new product would be $107 020 per year Compute the total cost of making and buying the parts. (Round your Pixed manufacturing overhead per unit rate to 2 decimals.) Make Total relevant cost (14,700 unts) 2b. Should Troy Engines, Ltd, accept the offer to buy the carburetors for $30 per unit? O Reject O Accept Hints References eBook & Resources Hint #1 Check my.wor