Exercise 13-3 (Algo) Make or Buy Decision [LO13-3] Troy Engines, Limited, 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 selt one type of carburetor to Troy Engines, Limited, for a cost of $37 per unit. To evaluate this offer, Troy Engines, Limited, has gathered the following information relating to lis own cost of producing the carburetor internally: Required: 1. Assuming the company has no altemative use for the facilities that are now being used to produce the carburetors, what would be the financial advantage (disadvantage) of buying 23,000 carburetors from the outside supplier? 2. Should the outside supplier's offer be accepted? 3. Suppose that if the carburetors were purchased, Troy Engines, Limited, could use the freed capacity to launch a new product. The segment margin of the new product would be $230.000 per year. Given this new assumption, what would be the financial advantage (disadvantage) of buying 23,000 carburetors from the outside supplier? 4. Glven the now assumption in requirement 3 , should the outside supplier's offer be accepted